KUALA LUMPUR, Oct 7 — The federal government is predicted to collect RM272.5 billion in government revenue in 2023, a decline of 4.4 per cent from the this year’s estimate.

In its Economic Outlook 2023, the government is also projected to reduce its operating expenditure by 4.3 per cent or RM272.34 billion in 2023 as compared to 2022’s revised estimate of RM284.7 billion.

As for net development expenditure, the government is also estimated to spend a total of RM94.3 billion, an increase of 32.4 per cent from the previous year.

"Towards inclusive and sustainable growth, the government will undertake development and provide public services in order to reduce disparities between regions and communities.

"To achieve inclusivity across the country, the focus will be given on the measures to upgrade and expand education and healthcare facilities as well as transportation and communication connectivity,” the report said.

It added that Budget 2023 will also focus on infrastructure development, with a particular focus on improving connectivity, in terms of transportation and internet.

Notably, the government is also set to significantly reduce its expenditure toward its Covid-19 Fund in 2023, signalling its commitment to building economic resilience in the post-pandemic recovery phase.

In its 2023 projections, the government is forecasted to contribute just RM5 billion to the fund or a reduction of 82.6 per cent from the previous year.

The aforementioned refers to a specific trust fund established by the government under the Temporary Measures for Government Financing (Coronavirus Disease 2019) Act to finance economic stimulus packages and recovery plans.