Highlights of Budget 2018

KUALA LUMPUR: Prime Minister Datuk Seri Najib Abdul Razak announced Budget 2018 today, laying out government plans to tackle rising costs and to continue fiscal consolidation efforts.
Following are some highlights from Najib's speech and the economic report:
Budget
>> Proposed budget stands at RM280.25 billion, a rise of 7.5% from 2017
>> 2018 revenue collection to expand around 6.4% to RM239.9 billion
>> Fiscal deficit expected at 2.8% of GDP for 2018, compared with 3.0% this year
>> "What is important is govt maintain fiscal consolidation target," Najib says
>> RM234.25 billion for operating expenditure, RM46 billion for development
>> An allocation of RM6.5 billion ringgit for rural infrastructure development
>> RM6.8 billion ringgit to be allocated to govt cash aid programme BR1M
Taxes
>> Income tax to be cut by 2 percentage points for those earning RM20,000–RM70,000 annually
Subsidies
>> RM3.9 billion ringgit for goods and transport subsidies including for cooking oil and gas, flour, electricity and tolls
Macro economy
>> Malaysia 2018 GDP forecast of 5.0-5.5% growth, 5.2-5.7% seen for 2017
>> 2018 inflation forecast at 2.5-3.5%, and 3.0-4.0% in 2017
>> Malaysia sees exports up 16.6% this year, then climbing 3.4% in 2018
>> Current account surplus seen at RM32.9 billion for 2018, RM32.3 billion forecast for 2017. — Reuters