Reduction in Internet charges, additional tax relief for parents, no road tax for motorcycles of 150 cc and below, and an additional half-month bonus for civil servants are some of the measures announced by Prime Minister Dr Mahathir Mohamad in a three-hour speech in Parliament today.

According to observers, the budget fell short of expectations with few goodies being handed out.

Budget deficit to reduce to 3.3 percent

The government to reduce budget deficit from 5.4 percent to 3.3 percent by cutting spending in the 2004 Budget from RM114.3 billion in 2003 to RM112.5 for next year.

The government has estimated an overall revenue of RM95.6 billion in 2004, making this its seventh deficit budget in a row.

The original plan for a balanced budget by 2005 has been revised - it will now be in 2006.