“PROSPERING THE NATION, ENHANCING WELL-BEING OF THE RAKYAT: A PROMISE FULFILLED” Budget Planning basically guides the allocation of funds in different sectors of a country. Soon after the preparation of a country's financial budget for the current fiscal year, Budget Planning is essential for making equal distribution of the available funds, to meet various revenue and expenditure purposes. Government Budget Planning:
Government Budget Planning of a nation is nothing but a summarized, planned version of the anticipated expenses and revenues of the government. It is more or less a lawful document, which requires the approval of the chief executive on governmental levels, after which is becomes ready to be passed by the legislature in most cases. Budget Planning concentrates mainly on the spending and incomes of the government, which form the two fundamental elements of a country's financial budget. Under Government Budget Planning, allocation of funds occurs not only to meet the economic necessities of a nation, but in technical and political spheres as well, on demand. These budgetary planning is meant for disbursing sufficient funds for best use in the economic spheres. In political spheres, Government Budget Planning has altogether a different connotation,. In this case, it is utilized for pushing the interests and pulling them in, in an effort to derive maximum benefits and evade all the difficulties. In the technical field, these budgetary planning predict the potential levels of the spending and incomes. The Budget 2013 themed “Prospering the nation, enhancing well-being of the rakyat: a promise fulfilled” is a gesture of appreciation to Malaysians. It is designed to boost investments that further advance the Economic Transformation Programmed (ETP) and achieve the objectives of Malaysia becoming a high-income nation.
This Budget analysis provides details on various tax measures that were announced in the 2013 Budget speech. The Budget has given focus on improving the quality of life of the rakyat, ensuring sustainable economic growth, spending prudently and reducing the fiscal deficit with the overall objective of prioritizing the well-being of the rakyat. The 5 key areas identified are:
1. First focus: Boosting Investment Activity 2.Second Focus: Strengthening Education and Training 3.Third Focus: Inculcating Innovation, Increasing Productivity 4.Fourth Focus: Fiscal Consolidation and Enhancing the Public Service Delivery 5.Fifth Focus: Enhancing the Wellbeing of the Rakyat
Highlights of Budget 2013 of Malaysia
1) RM200 one-off rebate for purchase of 3G smartphone for persons aged from 21 to 30 with monthly income of RM3, 000 or below.
2) BR1M 2.0: RM250 assistance money for single individual aged 21 and above with monthly income not more than RM2, 000. RM500 assistance money for household earning less than RM3000.
3) 50% discount on KTM Commuter fares extended to all Malaysians with a monthly income of RM3, 000 and below and who travel by KTM Commuter.
4) Reduce sugar subsidy by 20 sen per kg from 29 Sept 2012.
5) Individual income tax rate to be reduced by 1 percentage point for the first RM50,000 of chargeable income. Child tax relief be increased from RM4,000 to RM6,000 per child for children aged 18 and above and receiving receiving full-time tertiary education.
6) Book voucher of RM250 for students in Form 6 as well as Higher Learning Institutions. (Previously RM200)
7) PTPTN loans: Incentive – repayment of full loan from 1 October 2012 until 30 September 2013, a discount of 20% will be given on their loan. Regular repayment gets a 10% discount.
8) My First Home Scheme income limit for individual loans raised from...