KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak said the 2017 Budget will be a commitment budget.
“This is a commitment Budget. Others may put short-term political gain first, but this government will not,” he said in reference to some commentators' view that the 2017 Budget will be skewed towards the coming general election.
Najib said the government is committed to ensuring that the economic fundamentals of the nation remain resilient and strong.
This includes the policy on deficit targets spurring economic activity, and the long-term health of the financial system.
“We commit to being prudent and creative in optimising expenditure, to ensure delivery for the people.
“And we commit to a comprehensive, inclusive Budget that will fulfil our promises to the people”, he said in statement today.
Najib who is the Finance Minister, noted that during a year when advanced economies were expected to register growth of only 1.6 per cent, Malaysia’s economy is on course to grow between 4 and 4.5 percent.
“Despite the challenging global environment, the measures we introduced in last year's Budget have helped ensure that the economy remains resilient and continues to grow. We have a plan, and it is working,” he added.
He said the government will ensure that the country’s economic indicators, such as inflation levels, growth rates and debt levels, remain strong and resilient, reflecting the core fundamentals of the economy.
Despite fiscal pressures, inflation has been kept at low levels, and the Malaysian people as a whole are better off today than they were a year ago, he said.
“Indeed, we are now an upper middle-income country,” Najib said.
He said the government will continue to fulfil its promises to the people in a manner that is fair and inclusive.
“We are on the right trajectory, with the economy expected to improve still further in 2017 with growth of up to five per cent.
“At the same time, we recognise that there are challenges. We must put in place policies that address long-term structural changes, and will continue our efforts to improve the Bottom 40 as well as the Middle 40,” he said.
Najib said the government’s focus is on both the people economy and the public economy.
“The overall happiness and welfare of the people is key objective” he said.
The Prime Minister said he would make further announcements on infrastructure, development, public transport and health, fiscal incentives for small and medium enterprises, and human capital and skills training.
“In line with our commitment to put the people first; we intend to accelerate economic growth, empower human capital, drive education, increase connectivity, strengthen inclusive development and improve public service delivery”, he said.
In order to do this, Najib said a major focus of the 2017 Budget will be on raising the disposable income of the rakyat; encouraging upscaling, reskilling and entrepreneurship training; mitigating the rising cost of living; providing more affordable houses, and funds for maintenance; substantial measures on education; and allocations for the provision of quality healthcare services.
“The safety and security of all Malaysians remains my biggest priority. We will intensify our efforts and allocate more resources to our fight against extremism and crime”,” he said.
Najib will table the 2017 Budget at 4pm, in Parliament House, tomorrow.