OBJECTIVE OF BUDGET

 

1. Reallocation of Resources

Through budgetary policy, the government wants to reallocate resources according to economic and social priorities. This distribution to maximize national profits and public welfare can be preserved. It is actually to enable the nation money to be channeled according to sector priorities, so that a balanced national development can be achieved. As an example of the welfare scheme launched is Dasar Bantuan Keluarga Malaysia which was announced by the Minister of Finance in the presentation of the 2022 budget where the expenditure is RM 8.2 billion and it focuses on the B40 group involving 9.6 million recipients. Among the essence is the eligibility for recipients of the Social Welfare Department (JKM) was also increased to RM1169 from RM980 to qualify them to apply for assistance from JKM.

 

Government use term "KELUARGA MALAYSIA" as their tagline to rebuild our nation

2. Reducing in equalities in income

The government through the launched budget wants the gap between rich and poor not to be so far. It can be seen by imposing or increasing taxes on the rich as well as providing welfare schemes to the poor. For example, the government imposes income tax on certain groups where the higher the income of the people the higher the tax he has to pay. It also involves private companies where tax collection, stamp duty, levies and excies duties are imposed on them by the government. For example, the Bumiputera Youth Contractor Participation policy was announced in the 2022 budget where the objective was to create a program accelerator by CIDB (RM10 j). Provision of small -scale Government procurement projects to Bumiputera contractors that involves 10 millions. This allows more opportunities to be given to Bumiputera in order to reducing in equalities in income  with other races that monopoly certain sector.

3. Ecomomic stability

The budget that has to be launched must also focus on the national economic stability. It is very important to country development. Convincing investors and attracting new investors to continue investing in the country is an objective of the national budget. For example, despite facing fiscal challenges due to the COVID-19 epidemic, the Government has prepared four economic stimulus packages namely PERMAI, PEMERKASA, PEMERKASA+ and PEMULIH in 2021 comprising fiscal and non-fiscal measures amounting to RM225 billion or 14.8% of GDP to further increase the economic competitiveness of the country. This policy actually gives an injection of confidence to investors to continue investing in this country.

If economic unstable, some the others are affected !!!

4. Employment generation.

Through the 2022 budget that has been announced by the government, the emphasis on employment opportunities is also focused. Employment opportunities exist through government spending on various government mega projects such as railways, bridges, skyscrapers and many more that involve skilled and unskilled labor. Apart from that, the government also provides various incentives to its people to create employment opportunities for the young generation. For example, the Jamin Kerja Keluarga Malaysia (JaminKerja) policy was introduced by the government which provided 600,000 job opportunities with RM4.8 billion spent. Among the incentives available under this policy is the Malaysia Short -term Employment Program (MySTEP) to offer 80,000 job placements, with 50,000 within the public sector and 30,000 in Government -Linked Companies (GLCs). The implementation of the JaminKerja initiative is a step towards economic recovery as well as helping to reduce the nation unemployment rate to four percent and achieve full employment.

To growth the nation, administrator must be ensure our generation will be employed