KUALA LUMPUR: The additional allocation of RM15 billion announced during the mid-term review of the 12th Malaysian Plan (12MP) today will allow extra spending by the government to upgrade and improve existing facilities for the people.
Economy Minister Rafizi Ramli said this was because such facilities were given sufficient priority during the tabling of the 12MP in 2021.
"When we review (the 12MP) during the first two years of implementation, the limit was fixed at RM400 billion so many things were not taken into account and not included under the said budget.
"This is because the prime minister's focus to ensure there were no more dilapidated schools or clinics and roads are well maintained were not emphasised under the plan previously.
"Hence, this is why it requires additional allocations as we need new plans to be included in the existing ones while not abandoning the people's basic needs," he told a press conference in Parliament, today.
Rafizi added that the government had previously approved the budget increase, as the target of a 3.5 per cent deficit by 2025 could be maintained.
He added this would also allow the government to spend more, without the need to be burdened with more debts.
"With good governance, we are confident that the additional RM15 billion is actually government savings of various existing expenses, which can be shifted into development expenses in the next two years.
"Hence, we are confident that we can maintain a 3.5 per cent deficit which allows internal savings, and not borrow and spend."
Earlier, Prime Minister Datuk Seri Anwar Ibrahim when tabling the mid-term review of 12MP said the government is set to raise the expenditure ceiling of the 12MP by RM15 billion, bringing the total allocation for the plan to RM415 billion from RM400 billion allocated in 2021.
Anwar added the 12MP for the year 2023 until 2025 will emphasise sustainable economic growth, as well as transparent, fair and equitable wealth distribution across all economic sectors.
The 12MP tabled under the administration of former prime minister Datuk Seri Ismail Sabri Yaakob had allocated RM400 billion as development expenditure or RM80 billion per annum, higher than 11MP's allocation of RM248 billion.
