Is Budget 2021 truly extraordinary, or just ordinary?

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Budget 2021 is described as an ordinary budget despite the extraordinary economic crisis.

Budget 2021, while the largest in history with an allocation of RM322.5 billion, represents a relatively modest increase of RM7.8 billion from the previous year's RM314.7 billion. This incremental rise translates to approximately RM20 per Malaysian per month, a figure that has led to a generally lukewarm reception from various interest groups.
Modest Increase in Allocation Amidst Unprecedented Crisis

Minister Datuk Seri Tengku Zafrul Abdul Aziz acknowledged the Covid-19 pandemic as the most severe economic crisis since the Great Depression, impacting over 150 nations. Despite this context, the total allocation for Budget 2021, at RM322.5 billion, marks only a marginal RM7.8 billion increment over the RM314.7 billion allocated in 2020. This limited increase has been perceived as insufficient to meet the scale of the economic challenges.
Mixed Impact of Budgetary Measures

While the budget introduces measures such as reduced income tax rates, higher tax exemption limits for medical costs, and enhanced Bantuan Prihatin Rakyat (BPR) assistance, their immediate impact on the needy is expected to be gradual. The distribution of funds through a "wish-list of projects" for specific interest groups, government-linked companies (GLCs), agencies, and ministries raises concerns about the efficiency of trickle-down effects and potential leakages.
Lukewarm Reception and Unaddressed Sectors

A notable aspect of the budget's rollout was the subdued reaction from a broad spectrum of stakeholders, including medical professionals, small businesses, employers, chambers of commerce, trade unions, environmental and consumer groups, social NGOs, and economists. This collective lack of enthusiasm suggests that the provided financial assistance may not be perceived as adequate. Furthermore, critical sectors such as private higher education, facing a structural crisis, and issues surrounding PTPTN debt repayment were not explicitly addressed in the budget.
Focus on Employment Initiatives Amidst Concerns

The establishment of a new National Employment Council, chaired by the Prime Minister, signals a focus on unemployment and underemployment. The extension of the wage subsidy scheme for three months to support workers in the retail and tourism sectors, along with initiatives like MySTEP and PenjanaKerjaya aiming to create public sector and GLC jobs, are intended to provide employment opportunities. However, concerns have been raised about the sustainability of wages under these schemes, with allocations potentially falling below living wage calculations. The rationale behind the selection of specific training programs and target groups also remains unclear.

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Is Budget 2021 truly extraordinary, or just ordinary?

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