The government is expected to fork out about RM4 billion this year to subsidise basic foodstuff to cushion the burden of rising cost of goods, especially the lower income group, said Deputy Finance Minister Awang Adek Hussin.

The total amount of subsidy increased as compared with the RM3 billion last year was a result of a price increase in basic necessities like sugar, in the global market, he said.

“The total allocation for this year is among the highest ever spent by the government for the welfare of the people.

“This shows the government today is very sensitive towards the vagaries faced by the lower income group due rising cost of goods worldwide,” he told reporters after opening a futsal competition for the Tawang State Assembly in Kuchelong, Bachok, today.

Awang Adek, who is also the deputy chairman of the Kelantan state Umno liaison committee, said the government would study the allocation from time to time to ensure it reached the target group.

On the electricity tariff hike, Awang Adek said the decision made by the government was the best solution and should be accepted by consumers since it would be beneficial to both sides.

He said Tenaga Nasional Berhad (TNB) had increased its rates slightly so as to avoid making losses while consumers would receive the best service from the government-linked company.      

“Should TNB fail to carry out its responsibility, a penalty can be imposed,” he said.

Electricity tariff for domestic, commercial and industrial sectors were increased by an average of 2.23 sen per kilowatt hour (kWh) from 31.31 sen/kWh to 33.54 sen/kWh, effective June 1.

- Bernama