RM372 bln Budget 2023 targets structural reforms and growth, 2022 GDP revised upward to between 6.5 and 7 pct

KUALA LUMPUR: Amid constraints in revenue growth and rising challenges, the government has struck a balance between ensuring growth and safeguarding the people's interest as it gears up to face a possible global recession in 2023 while continuing to manage the impact of COVID-19.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz announced today that RM372.3 billion will be set aside for Budget 2023 versus last year's RM332.1 billion allocated in the previous budget.

"Themed Keluarga Malaysia, Makmur Bersama'', this budget will ensure the wellbeing of the rakyat, continuity of business, and the efficiency of the civil service," he said at the tabling of Budget 2023 in parliament here today after rumours that it will not be taking place in order to give way for the 15th General Election.

The finance minister said in ensuring that Budget 2023 will be responsive, the government will continue to implement an expansionary fiscal policy so that it will deliver the necessary support to the people and businesses.

Tengku Zafrul noted that the economy expanded 5 per cent in the first quarter and jumped 8.9 per cent in the second, which was the best performance in Southeast Asia.

"The economic momentum is expected to continue with a solid third quarter growth.

"Hence from a previous forecast of 5.3 - 6.3 per cent, the government has revised upward the GDP growth for 2022 to between 6.5 and 7 per cent," he revealed.

For 2023, Malaysia is expected to see economic expansion moderate to between 4 and 5 per cent.