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Budget 2023's initiatives can reduce income gap — MB

2 Mar 2023, 6:56 AM
Budget 2023's initiatives can reduce income gap — MB

By Siti Rohaizah Zainal

KUALA LUMPUR, March 2 — The various initiatives for targeted groups in Budget 2023 are capable of bridging the income gap and further eradicating extreme poverty in Malaysia, said Menteri Besar Dato' Seri Amirudin Shari.

Speaking in his capacity as Gombak MP, he said this includes providing Sumbangan Tunai Rahmah (STR) cash aid to over eight million households, with a sizeable allocation.

"Referring to the handbook and domestic revenue, we can identify the basis of the people's problems as a whole, like RM98 billion in national revenue contributed by corporate taxes and RM30 billion derived from individual taxes and income.

"This is indicative that corporate taxes and companies significantly contribute to Malaysia's economic position, in contrast to the contributions from individual and the people's income taxes. The people's income is relatively smaller, and there is a considerable gap between high, medium, and low-income earners," he said during the debate on the Supply (Budget) Bill 2023 in Parliament yesterday.

Amirudin added that in order to resolve the matter, he believes Tambun MP cum Prime Minister Datuk Seri Anwar Ibrahim has proposed an effort to eradicate extreme poverty, and increase the people's income through several initiatives and donations, which includes increasing the number of STR recipients.

This effort, among others, is vital to reducing the burden faced by the people, especially those from the low-income group.

On Friday (February 24) during the tabling of Budget 2023, Anwar announced the STR programme will be updated, with every household earning less than RM2,500 eligible to receive a cash contribution.

He said the government will also provide an additional RM600 contribution to the poorest STR recipient households, according to the e-Kasih data, which is channelled in the form of food baskets and vouchers for basic goods.

"This means that families in the hardcore poor group are eligible to receive a maximum of RM3,100 in donations, which will help ease the burden of living for nearly nine million recipients," Anwar said.

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