KUALA LUMPUR, Oct 12 — The total subsidy allocated for the people under Budget 2023 amounted to RM55 billion, more than the RM31 billion in 2022, according to the Ministry of Finance (MoF).
The estimate of RM55 billion is based on the price of crude oil which is expected to go down to about US$90 (RM421) per barrel, as well as other commodity prices that are also expected to decline on the expectation of a global slowdown next year.
Subsidies for the income groups of B40 dan M40 also increased for 2023.
“Allocations for social aid and subsidy are increased two-fold from 5.2 per cent to 11.3 per cent of operating expenditure.
“Cash aid to the B40 is around RM10 billion,” the ministry said.
Budget 2023 also allocated RM1 billion for a hardcore poor programme to help them be independent through economic and agricultural initiatives.
The ministry noted that the 2022 subsidy allocation was RM31 billion but already the subsidy expenditure has reached RM77.7 billion this year due to global supply disruptions which led to rising inflation.
“For example this year, oil price jumped to US$120 per barrel, resulting in a higher subsidy for the RON95 fuel while higher coal price also led to more subsidy for the generation of electricity,” it added. — Bernama
