The Malaysian Federal Budget 2021 was unveiled by Finance Minister Tengku Zafrul Azi. Malaysia’s economy is projected to rebound with a growth between 6.5 per cent and 7.5 per cent next year.
The government led by Prime Minister Muhyiddin Yassin allocated RM322.54 billion (US$77.9 billion) or 20.6 per cent of the gross domestic product (GDP) for total expenditure in 2021, according to the fiscal outlook report released by the Ministry of Finance in conjunction with the tabling of the budget.
The projected 5.4 per cent deficit for next year is lower than this year’s 6 per cent – which is in part due to a shortfall in revenue by 7 per cent to RM227.3 billion (S$74 billion) this year.
“Accordingly, the total expenditure for the year 2021 is the largest expenditure in history with a value of RM322.5 billion,” said Minister of Finance Tengku Zafrul Tengku Abdul Aziz.