KUALA LUMPUR – Malaysia’s development expenditure (DE) has been revised down to RM62 billion for 2021 from the original allocation of RM69 billion.
In the 2021/22 Economic Report released this afternoon, it was highlighted that the downward revision is also in line with the reassessment and deferment of several projects.
A total of RM60.8 billion of the DE is direct allocation while RM1.2 billion comprises loans to state governments and government-linked entities.
The largest allocation goes to the economic sector, totalling 54.5%, followed by social (28%), security (11.8%) and general administration (5.7%).
The report said that the RM33.8 billion estimated expenditure for the economic sector will be used to enhance public transportation and communication network infrastructure, develop public utilities, escalating trade and industrial activities as well as boosting agriculture.
The transport subsector under the economic sector received the largest allocation of RM13 billion to finance major ongoing projects, such as the Electrified Double Track Gemas-Johor Baru and Pan Borneo Highway projects.
The money will also go to the upgrading of federal roads throughout the country.
The report also said that, for the social sector, the outlays for 2021 are expected to increase to RM17.3 billion from RM13.8 billion in 2020, with education and training receiving the largest share at RM8.1 billion.
The allocation is mainly for the enhancement of technical and vocational education and training (TVET) programmes, upgrading and renovation of schools, teachers’ quarters and tertiary institutions as well as the extension of teaching hospitals.
Health comes in second under the social sector, with RM4.4 billion being allocated in 2021 for improving healthcare accessibility and facilities for the rural areas.
Meanwhile, the security sector saw an increase in allocation of 26.5% to RM7.3 billion in 2021 compared with last year, while the general administration sector saw an increase of 17.6% to RM3.6 billion in 2021 compared with RM3 billion in 2020. – The Vibes, October 29, 2021
