The government is allocating RM297 billion in total expenditure under the 2020 Budget, RM19.5 billion more than the RM277.5 billion allocated last year, says Finance Minister Lim Guan Eng.

The amount does not include RM2 billion reserved for contingencies.

“The 2020 Budget comprises operating expenditure of RM241 billion and development expenditure of RM56 billion,” he said when tabling Budget 2020, themed “Driving Growth and Equitable Outcomes Towards Shared Prosperity” in Parliament today.

Lim said the government expects to collect RM244.5 billion in revenue next year - an increase of RM11.2 billion from 2019 - after excluding the one-off Petronas special dividend of RM30 billion.

He said the government will dispose of assets which have been approved previously via a competitive bidding process to realise the full potential of these assets.

This is expected to generate over RM3 billion of revenue in 2020, he said.

Lim said Budget 2020 is growth-centric, with precisely designed measures to optimise the impact on economic growth, job creation and structural change, without compromising the government’s commitment to restore Malaysia’s fiscal health in the medium term.

He said Malaysia’s economy will remain resilient going forward as a result of the budgetary measures, adding that gross domestic product is expected to grow 4.7 percent this year and improve to 4.8 percent in 2020.

Inflation is expected to remain well-anchored at 2.0 percent in 2020, said Lim.

“In the event of continued worse-than-expected external environment, the government is ready to step in with contingency measures to provide further support or stimulus to growth,” he added.

- Bernama