KUALA LUMPUR: Following are the highlights of the Economic Outlook, Fiscal Outlook and Federal Government Revenue estimates for 2023:
– Economy is expected to grow moderately between 4.0 to 5.0 per cent in 2023 versus 6.5 to 7.0 per cent in 2022.
– Services sector is expected to be the main contributor to 2023 GDP growth, which is anticipated to expand by 5.0 per cent in 2023.
– Construction sector to grow by 4.7 per cent in 2023, manufacturing by 3.9 per cent, agriculture by 2.3 per cent and mining by 1.1 per cent.
– Budget 2023 allocation amounted to RM372.3 billion versus RM385.3 billion in 2022 (revised upwards from RM332.1 billion).
– The top three recipients of Budget 2023 are the Ministry of Finance (RM67.2 billion), Ministry of Education (RM55.6 billion), and Ministry of Health (RM36.1 billion), constituting 43.3 per cent of total expenditure.
– Federal government revenue is expected to decrease by 4.4 per cent in 2023 to RM272.57 billion from a growth of 22.0 per cent (RM285.22 billion) in 2022.
– This fiscal deficit is expected to reduce to 5.5 per cent of GDP in 2023 from 5.8 per cent in 2022.
– Fiscal deficit is expected to be consolidated at a gradual pace with the overall balance averaging at 4.4 per cent of GDP in the Medium-Term Fiscal Framework 2023-2025.
– The government may extend the statutory debt limit of 65 per cent of GDP in the medium term after the expiry of Act 830 on Dec 31, 2022.
– Crude oil price is expected to average at US$90 per barrel.