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Najib tables RM267.2bn Budget for 2016

  • Photo courtesy: Sin Chew Daily

KUALA LUMPUR, Oct 23 (MySinchew) -- Prime minister cum finance minister Datuk Seri Najib Tun Razak has arrived at Dewan Rakyat to table the 2016 Budget.

The theme for the 2016 Budget is "'Prospering the People".

The budget outlines five priorities, namely strengthening economic resilience, increasing productivity, innovation and green technology, empowering human capital, advancing the Bumiputera agenda, and easing the cost of living of the people.

The following are the highlights for the 2016 Budget:

- Budget 2016 allocates RM 267.2 billion compared with the revised RM260.7 billion in 2015.

- RM215.2 billion is for operating expenditure and RM52 billion for development expenditure

- RM70.5 bilion is for emoluments and RM36.3 billion for supplies and services.

- RM30.1 billion is allocated to the economic sector.

- RM13.1 bilion is earmarked for education and training, health, housing and the well-being of the people.

- RM5.2 billion is allocated to the security sector.

- Federal Government revenue collection is estimated at RM225.7 billion, an increase of RM3.2 billion compared to 2015.

- Fiscal deficit is expected to decline to 3.1 per cent of GDP in 2016.

- Domestic investment with contribution to the GDP is estimated at 26.7 per cent in 2016

- Development of the Malaysian Vision Valley with initial investment forecast at RM5 billion in 2016.

- Implementation of Cyber City Centre in Cyberjaya with development cost of almost RM11 billion.

- Development of an airport township or KLIA Aeropolis to attract an investment of RM7 billion.

- Investment of RM6.7 billion by Khazanah Nasional Berhad in nine high-impact domestic projects.

- Investment of RM18 billion for RAPID Complex in Pengerang, Johor.

- Development of Rubber City, Kedah with an allocation of RM320 million, Samalaju Industrial Park, Sarawak (RM142 million) and Palm Oil Jetty in Sandakan, Sabah (RM20 million).

- Special Reinvestment Allowance for manufacturing and agriculture sectors for selected existing companies.

- 20 per cent stamp duty exemption on Syariah-compliant loan instruments to finance the purchase of houses.

- Additional RM1 billion for Syariah-compliant SME Financing System until Dec 31 2017.

- RM107 million allocated to SME Blueprint.

- RM60 million earmarked for Entrepreneur Acceleration Scheme, SME Capacity and Capacity Enhancement Scheme.

- Establishing a RM200 million SME Technology Transformation Fund to provide soft loans at 4 per cent.

- Building and improving rail transport network and highways.

- RM900 million allocated to implement Jalan Tun Razak Traffic Dispersal Project.

- Feasibility study on constructing a Masjid Tanah-Klebang-Jambatan Syed Abdul Aziz coastal highway in Melaka

- RM42 million allocation for the construction of Mukah Airport, Sarawak, and upgrading airports in Kuantan and Kota Bharu.

- Feasibility study for the extension of the runway in Batu Berendam Airport, Melaka

- Number of GST-registered companies approaches 400,000 with submission compliance at over 90 per cent.

- Oil prices expected to remain low in 2016 with oil-related revenue estimated to decline to RM31.7 billion.

- GST revenue returned to benefit the people.

- Without GST and with the SST still in place, government revenue would decrease by RM21 billion.

- GST revenue at RM39 billion.

- Government prepared to forego GST revenue on several basic necessities.

- Seven measures to improve GST treatment with effect from Jan 1, 2016 including zero rating of controlled medicines and food items like soybean-based milk and organic-based milk for infants and children.

- Malaysian consumers to get rebates on mobile prepaid cards equivalent to GST amount paid, effective Jan 1, 2016 to Dec 31, 2016.

- Taxable income band for highest tax rate to be raised from 25 per cent to 26 per cent for those with an income of between RM600,000 and RM1 million.

- Tax rate for those with an income above RM1 million to be raised from 25 per cent to 28 per cent.

- Ampang LRT line extension project ready for use in March 2016, Kelana Jaya-Putra Heights LRT extension line ready from middle of 2016.

- MRT Sungai Buloh-Semantan ready in December 2016, Semantan-Kajang to complete by mid-2017.

- MRT II Sungai Buloh-Serdang-Putrajaya will commence in second quarter of 2016, to complete by 2022.

- LRT3 Bandar Utama, Damansara-Johan Setia, Klang will commence in 2016 and expected to complete by 2020.

- The government continues negotiations on high-speed rail with Singapore.

- Rapid Transit Bus project for KL-Klang and Kota Kinabalu will be implemented.

- MCMC to provide RM1.2 billion for rural broadband projects, National Fibre Backbone Infrastructure, High-speed Broadband, undersea cable system.

- RM250 million to be channelled for national broadcasting digitalisation project to enhance audio visual quality and provide value-add to TV content.

- RM1.4 billion to build and upgrade 700km rural roads nationwide.

- RM878 million for Rural Electrification Project covering 10,000 houses.

- RM568 million for Rural Water Supply Project to benefit 3,000 houses.

- The government targets a total of 30.5 million tourists, which will contribute RM103 billion to the economy.

- Online visa applications will be implemented beginning with China, India, Myanmar, Nepal, Sri Lanka, the US and Canada.

- RM450 million will be set aside for various high-impact programmes.

- RM190 million is allocated to FAMA for Price Reduction Programme; increasing farmers' markets by an additional 50; and establishing 150 new Agrobazaar Rakyat 1Malaysia.

- Rebranding of MARDI, Department of Veterinary Services, Department of Agriculture and Department of Fisheries.

- RM235 million earmarked to MATRADE for the 1Malaysia Promotion Programme Services Export Fund and Export Promotion Fund

- RM877 million is set aside to provide clean water supply by building water treatment plants.

- RM515 million is allocated to ensure the reliability of electricity supply in Sabah.

- RM41.3 billion is allocated for 2016 under the Education Blueprint.

- Thirty 30 primary schools, 27 secondary schools, four MRSM and five fully residential schools will be built.

- RM135 million is set aside for upholding Bahasa Malaysia and strengthening English.

- Maximum relief on tuition fees for individual taxpayer increased to RM7,000 from RM5,000 a year.

- RM145 million is allocated to prepare athletes for the 29th SEA Games and 9th Asean Para Games in 2017 Kuala Lumpur.

- RM75 million is allocated to produce world-class champions under the Preparation of Elite Athletes (Podium Programme).

- RM22 million is to be channelled to build two sports complexes in Bagan Datoh and Kuantan.

- RM360 million is provided to improve the National Service Training Programme for 20,000 trainees.

- RM77 million is set aside to implement the Train & Replace Programme in selected fields, to improve the management of foreign workers.



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