Increase Development Expenditure for Budget 2020, Say Analysts
THE government should focus on increasing allocation for development spending in Budget 2020, analysts observed.
This would help the country to sustain itself in the near-to-mid term, especially in today’s business and economic uncertainties.
Sunway University Business School economist Prof Dr Yeah Kim Leng said as development expenditure share has dipped below 20% since 2012, the government in its efforts to raise spending efficiency should raise the share for development.
This, he said, is due to the sector’s stronger multiplier effects and higher contribution to the country’s production capacity increase compared to operating expenditure.
“It would be good to have development spending inch closer to RM60 billion in 2020 from RM55 billion budgeted for 2019,” he told The Malaysian Reserve yesterday.
A total of RM314.5 billion was allocated for Budget 2019 versus RM290.4 billion in the previous year, with 82.61% or RM259.85 billion for operations expenditure and 17.39% or RM54.7 billion for development.
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