by HAJAR UMIRA MD ZAKI / pic TMR FILE

ECONOMY Minister Rafizi Ramli(picture) foresees the targeted subsidies will be implemented by 2024, followed by the success of the household socioeconomic database, the Central Database Hub (PADU).

As for the mechanism in distributing the targeted subsidies, he further explained that the issue can be decided by the government at the appropriate time to be implemented as it was regarding the matter of approach.

“The important thing is that we have a comprehensive database that ensures we reduce the risk of dropping out. Hence, the implementation timeline is that Padu will start to be tested in Nov 2023 and God willing, the plan will be opened to the public to confirm their socioeconomic status in Jan 2024.

“After being tested and confirmed and we reach the target of household information being fully present in Padu, then that will allow the government to decide when to start targeted subsidies,” he told the media after the tabling of the Midterm Review of 12th Malaysia Plan by the Prime Minister Datuk Seri Anwar Ibrahim.

Anwar previously said the government was concerned about the people who were burdened by the high cost of living and decided to improve the targeted subsidies delivery as one of the main shifts in the Madani Economy.

To ensure more responsible budgetary management and lessen economic distortions, he highlighted that subsidies for electricity, fuel, and gasoline will be restructured together with other forms of social support.

The targeted subsidies and aid to the people will be coordinated through Padu based on the household data to improve the monitoring and efficiency of the government’s aid.

In regards to the 12 MP Midterm Review today, Rafizi said will allow extra spending by the government to upgrade and improve existing facilities for the people.

“When we reviewed (the 12MP) during the first two years of implementation, the limit was fixed at RM400 billion so many things were not taken into account and not included under the said budget.

“This is because the prime minister’s focus to ensure there were no more dilapidated schools or clinics and roads (that) are well maintained were not emphasised under the plan previously.

“Hence, this is why it requires additional allocations as we need new plans to be included in the existing ones while not abandoning the people’s basic needs,” he told a press conference in Parliament, today.

Rafizi added that the government had previously approved the budget increase, as the target of a 3.5% deficit by 2025 could be maintained and would also allow the government to spend more, without the need to be burdened with more debts.

“With good governance, we are confident that the additional RM15 billion is actually government savings of various existing expenses, which can be shifted into development expenses in the next two years.

“Hence, we are confident that we can maintain a 3.5 per cent deficit which allows internal savings, and not borrow and spend.”

Earlier, Prime Minister Datuk Seri Anwar Ibrahim when tabling the midterm review of 12MP said the government is set to raise the expenditure ceiling of the 12MP by RM15 billion, bringing the total allocation for the plan to RM415 billion from RM400 billion allocated in 2021.