A Whopping RM421b allocation for Budget 2025

By：Lim Hang Kwan

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim submitted the second reading of budget 2025 in Dewan Rakyat.（Photo by Anwar Facebook）

KUALA LUMPUR: Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim has announced a total allocation of RM 421 billion, or 20.2% of gross domestic product (GDP) in the 2025 budget allocation, up from RM407.5 billion in Budget 2025. 

The ringgit has also increased by 3.3% compared to the revised 2024 budget, said Anwar when he submitted the second reading of budget 2025 in Dewan Rakyat.

Administrative expenditure is RM335 billion, accounting for 79.6% of the total expenditure in the 2025 budget, and development expenditure is RM86 billion, or 20.4% of the 2025 budget. Three separate budgets of RM57.8 billion for Education, RM38.5 billion for Health and RM13.6 billion for Defense are the main beneficiaries of Budget 2025, accounting for 31% of the total,” it said in the 2025 Budget released on Oct 18, 2024. concluded the Fiscal Outlook and Federal Government Revenue Estimates report.

Anwar announced that sales tax will be imposed next year on premium imported goods items like salmon and avocado from May 1 and Carbon tax to be implemented in seven sectors, including steel, iron and energy in 2026 to promote least carbon intensity.

Another important policy announced was the Government targeted subsidies for RON95 petrol to be implemented mid-2025. The government has stressed that only 15% of people, or T15, will be excluded from the subsidy. The government will also raise the excise duty on sugary drinks by RM0.40 per liter starting the first of January 2025.

The second portion of the 2025 Budget with the members of Parliament will  take place October 21 to November 5, 2024. The minister’s answer session will begin from November 6 to 12, 2024.