Budget 2016: Govt to announce slightly higher budget, says Husni

The government is set to announce a slightly higher budget for 2016 on Oct 23 compared to that in 2015 given the year is the beginning of the 11th Malaysian Plan, as well as to boost the domestic economy.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the 2016 Budget is very challenging as the government, in the face of the global economic uncertainty, at the same needs to ensure the vision of high prosperity for the people is achieved.

"We have drafted the budget but we will look at all the issues highlighted by the ministries (before finalising it)," he told a press conference after launching the "Youth Housing Scheme" here today.

After taking into account the current situation, Husni said the 2016 budget would see a larger allocation for development expenditure with a reduction in operating expenditure to balance the budget deficit.

He said the overall budget would be tabled by Prime Minister Datuk Seri Najib Razak.

The government has also revised the country's fiscal deficit to Gross Domestic Product (GDP) ratio for this year to 3.2 percent from the earlier target of three per cent due to the challenges in the global environment.

The YHS, a scheme for married youths with a combined household income of no more than RM10,000, is aimed at helping them own their first home.

Bank Simpanan Nasional, the sole bank appointed to execute the scheme, will provide home loans ranging from RM100,000 to RM500,000 with a 35-year tenure up to the age of 65, whichever is earlier.

Further aid is offered by the government with monthly disbursements of RM200 for the first two years from the first disbursement to help the couples with their loan repayments.