Economics
Malaysia Budget Lifts Development Spending to Revive Economy
- 2021 spending plan outlay pegged at 322.54 billion ringgit
- 2021 GDP growth seen at 6.5%-7.5% vs contraction in 2020
17 billion ringgit will be channeled to a Covid-19 Fund and spending on healthcare is being raised to 4.7 billion ringgit.
Photographer: Mohd Rasfan/AFP/Getty Images
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Malaysia on Friday unveiled the largest budget in its history for 2021, boosting spending on social sectors and infrastructure to soften the blow from the coronavirus pandemic and get the $365 billion economy back on track for rapid growth.
The 322.54 billion ringgit ($78 billion) spending plan is 8.5% larger than the one passed a year ago, though additional stimulus since then has narrowed the difference. Next year’s fiscal deficit is projected at 5.4% of gross domestic product, down from 6% expected this year, the finance ministry said in a report released alongside the budget.