KUCHING: As 2015 marks the final budget allocation under 10th Malaysia Plan (10MP), economists believe next year will see an influx in allocation for development expenditure.
Based on a budgeted RM230 billion for development expenditure, Analysts at TA Securities Holdings Bhd (TA Research) said this suggests RM50 billion to spare for 2015 which will be the highest allocation since 2010.
TA Research says the coming budget will also see allocation for the remaining projects under 10MP before moving to 11MP, which will cover the final leg under the nation’s transformation into a high income economy.
“The notable projects under this umbrella would include Bandar Malaysia, MRT Line 2 and 3 (GDV of RM25 billion each); Tun Razak Exchange (RM26 billion); Kwasa Land (RM50 billion); Southern Double Track (RM8 billion).
“Beyond that, priority will be given to proposed development projects with high creativity index under 11MP.
“The creativity index is calculated based on the impact on the rakyat against the implementation cost, based on demand from state governments and ministries for the 11MP.”
As it is, TA Research understood that some RM13.9 billion had been applied for the implementation of more than 30 development projects under the 11MP.
Among the projects are construction of infrastructure for state and federal roads, coastal roads, a new state general hospital as well as affordable housing.
Prime Minister Datuk Sri Najib Tun Razak has reaffirmed the government’s commitment to shave its fiscal deficit from 3.5 per cent in 2014 towards a balanced budget by 2020.
On this point, TA Research estimated a budget deficit of minus three per cent for gross domestic product for Budget 2015, just a shade higher than 10MP’s target of 2.8 per cent but still in line with global standard.
“As we expect the Government to unveil a slightly softer GDP forecast of five per cent to 5.5 per cent in 2015, this will be achieved through fiscal reform measures.”