Budget focuses on stimulating domestic business, bonus for civil servants

comments     Published     Updated

Prime Minister Dr Mahathir Mohamad today tabled the 2003 budget which concentrates on efforts to stimulate domestic business and industrial activities to generate higher economic growth.

The premier, who is also finance minister, outlined measures to further reduce the cost of doing business to enhance the country's competitiveness.

"I do not intend to propose any increase in taxes neither introduce new ones. However, to ensure that the government will have adequate financial resources to finance its expenditure, efforts will be intensified to enhance tax compliance," he was quoted as saying by Bernama .

The premier proposed, in line with the policy to promote domestic investment, that the corporate tax for small and medium scale industries with paid-up capital of RM2.5 million and below be reduced from 28 percent to 20 percent on chargeable income up to RM100,000.

Bonus for civil servants

Civil servants also had cause to cheer following Mahathir's announcement that they will receive one-month bonus or a minimum of RM1,200.

The government will also allocate nearly RM5 billion from 2002 to 2008 for the implementation of the language switch where Science and Mathematics will be taught in English in schools.

Of this allocation, RM978.7 million will be spent this year and next year on equipment such as as notebook computers and LCD projectors.

The prime minister said the proposed 2003 budget of RM109.8 billion represented an increase of 9.2 per cent compared with the original allocation in 2002.

Of this, RM72.84 billion is for operating expenditure and RM36.96 billion for development expenditure.

The Bernama report said with revenue estimated at RM89.79 billion, the federal government's overall account is expected to register a deficit of 3.9 per cent of gross domestic product (GDP), lower than the 4.7 per cent in 2002.

Mahathir said the two-year budget preparation was to ensure the smooth implementation of development projects as implementing agencies would have lead time to plan and carry out projects.



Malaysiakini
news and views that matter


Sign In