KUALA LUMPUR, Oct 20 — The largest allocation in history of RM421 billion for Budget 2025 is the result of good governance, prudent fiscal discipline and the country’s rapid economic growth, said Economy Minister Rafizi Ramli.

Rafizi said these factors allow the government to spend more, but still remain on the responsible fiscal target that has been set as well as the commitment to continue reducing the national debt.

"So the annual debt would go from RM100 billion in 2022, down to RM95 billion, RM90 billion, RM85 billion and next year RM80 billion.

"Because from the fiscal point of view, we need to reduce the new annual debt for us to reach around 60 per cent of debt to GDP (gross domestic product) by 2028,” he told reporters after officiating at the National Statistics Day celebration and the pre-launch of the Department of Statistics of Malaysia website here today. Also present was chief statistician Datuk Seri Dr Mohd Uzir Mahidin.

Last Friday, Prime Minister Datuk Seri Anwar Ibrahim presented Budget 2025 with an allocation of RM421 billion, covering RM335 billion for operating expenses and RM86 billion for development.

Describing the budget as complying with all the government’s plans, Rafizi said it provides space and important focus in line with the Madani Economy, which is to raise the economic ceiling and income floor of the people.

"We are on track, without cutting expenditure for the rakyat. You can see that projects will continue to run as usual and civil servants’ salaries will be increased, etc, all of which will not be achieved by going into more debt as before,” he said.

He added that in order to raise the economic ceiling, the government is focusing on major forms of investment because that effort will drive the country’s economy.

"What is big project, because instead of focusing on big projects, it is better to take a long term view of investment by investing into capacity building of the right sectors,” he said.

To raise the income floor of the people, Rafizi said the government is giving the main focus on the vulnerable groups through allocations that will be distributed in the form of aid and the implementation of programmes that have the potential to generate income and better economic prospects of that group.

"We take care of this group, it is actually a bigger allocation to STR (sumbangan tunai rahmah) and additional forms of assistance to vulnerable groups,” he said.

When tabling Budget 2025, Anwar also announced the highest increase for STR and sumbangan asas rahmah (SARA) which is RM13 billion compared to the previous RM10 billion, which will benefit nine million recipients or 60 per cent of the country’s adult population. — Bernama