Sunday, September 03, 2006


"Budget Highlights"

* The budget plans an expenditure of RM136.8 Bil, an increase of 5% over 2005, aimed at better development and quality of life for the people.

* Of the amount, operating expenditure, which includes the normal runing of the government such as civil servants pay, will be RM101.3bil; while the rest will be for development expenditure, which will also involve new projects.

* Cigarette tax increased by 13%, while tax on liquor up by 9%.

* Automatic income tax relief of up to RM4,000 for each child (RM9,000 for disabled children) studying in local institutions of higher learning.

* With the exception of vehicles in Sarawak, private diesel vehicles exceeding 1,600cc will be given road tax deduction of 40%, effective Oct 5.

* Stamp duty and real property gains tax to be abolised on mergers and acquisitions of listed companies. This will be effective from Oct 1 this year and till the end of 2007. The aim is to strengthen the capital market.

* A total of 334 posts will be established to facilitate one-stop centres in all local authorities in expediting the processing of licences and permits, as well as payment of assessment fees and fines.

* Emphasis will be given to skills training and technical expertise. RM493 million is allocated for the enrolment of students in technical, vocational and skills training, which will be increased from 72,000 students for this year to 98,000 in 2006.

* In addition, an allocation of nearly RM1 billion is provided for trade and industrial training at Institut Kemahiran MARA, Pusat Giat MARA, Institut Kemahiran Belia Negara, Industrial Training Institutes and Advanced Technology Training Centres.

* To continue its long war on drug abuse Pemadam is to review rehabilitation methods. RM207 million allocated for National AntiDrug Agency to undertake prevention treatment and rehabilitation programmes and management of 29 rehabilitation centres

* Another concern has been AIDS. The health Ministry is to set up Advisory Panel to formulate an integrated action plan to fight HIV and Aids. Number of cases this year has risen to 65,000

* Government to spend RM1.1bil to build 26,000 housing units for teachers, members of the armed forces, police, firemen and customs officers.

* Khazanah Nasional will be establishing a National Agriculture and Food Corporation. Initial apital for the project will be RM500mil. It is aimed to make it a centre of excellence in agricultural supply chain management.

* The government has been emphasising on development of biotechnology and in line with this it is contributing RM100mil to launch the 'Malaysian Life Sciences Capital Fund'. This is to encourage investments in biotechnolgy to be managed by Malaysian Technology Development Corporation.

* The agriculture sector is allocated a sum of RM2.8 billion for development expenditure, primarily for agriculture, animal husbandry, fishery and forestry.

* The Fund for Food (3F) will be further increased by RM300 million to ensure sufficient funding for the food production industry.

* The Government will establish a new company with an initial funding of RM200 million to develop forest plantations commercially.

* RM400 million allocated to finance agricultural projects of GLCs.

* Group relief to companies within a group, with a minimum of 70% ownership between them. The group relief allows 50% of a company's current year losses to be offset against the profits of other companies in the same group.

* For companies with Pioneer Status, accumulated losses and unabsorbed capital allowances during the pioneer period will be allowed to be carried forward and be deducted from the post-pioneer income.

* A Yayasan Amanah Hartanah Bumiputera, a Bumiputera property trust foundation with an initial capital of RM2bil is to be established to purchase commercial properties in prime locations.

* Much stress on rural development to give a better life to the rural people. This includes better education, water and electricty supply and roads. About RM5.7bil would be spent for this.

* The government has pledged to go all out and fight increasing crime. In line with this the police force is to be reinforced. RM3.5bil has been allocated for operational expenditure and RM493mil for development expenditure. In addition police personnel in lower ranks would be reimbursed for stitching uniforms with up to RM100 per uniform for three uniforms.

* One of the aims of the government was to lower the the budget deficit from the current 3.8% of the gross domestic product to 3.5%. It was 5.6% in 2002.

* Sabah state has been allocated RM2.3bil for 2006 to build roads, and improve water and electricity supply as well as education and health services

* Sarawak has been allocated RM2bil to provide better roads, airports and education.

* Civil service fixed allowance for all supporting staff to be increased between RM30 and RM50.

* Civil servants earning up to RM750 a month will receive two months bonus.

* Those earning more than RM750 a month will be paid a bonus of one month salary, subject to a minimum of RM1,500.

* The bonus will be paid in two equal instalments in October and December 2006.

* Cost of living allowance to be extended to those provided with government quarters at the rate of 50 per cent of those not staying in government quarters, effective Sept 1 2006. This will benefit over 146,000 civil servants.

* Housing loans for civil servants to be increased by 20 per cent effective immediately.

* The government to pay pensioners who are also affected by the escalating cost of living with a one-off payment. Those receiving pension of less than RM750 a month will receive RM400 and those receiving pension of RM750 and above will receive RM200.


G MoNeY said...

smokes now $7.40

The same gal from the Bronx said...

i am gonna marry the sultan LOL

arieka said...

i wanna know bonuses n perks for govt. servants.... :p