Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
Bernama
18/10/2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024, attributed to improved tax collection by the federal government. - Filepic
KUALA LUMPUR: The financial position of the consolidated public sector (CPS) is estimated to record a lower current surplus of RM41.7 billion in 2024 compared to RM70.5 billion in the preceding year due to lower non-financial public corporations (NFPCs) revenue projection, according to the Ministry of Finance (MoF).
In its 2025 Fiscal Outlook and Federal Government Revenue Estimates report released today, the ministry anticipated that the consolidated development expenditure (DE) will rise by 14.2 per cent to RM203.2 billion, indicating higher capital expenditure, primarily by the NFPCs.
"Therefore, the CPS is expected to record an increase in the overall deficit to RM161.5 billion in 2024, or 8.3 per cent of gross domestic product (GDP), after netting off intra-transfers, net lending as well as dividends and taxes between units," it said.
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024, attributed to improved tax collection by the federal government.
Similarly, the consolidated operating expenditure (OE) is expected to increase by 3.2 per cent to RM368.7 billion, notably due to the higher allocation for emoluments by the federal government, it said.
Thus, the ministry said the general government's current surplus is estimated to reach RM16 billion.
However, the consolidated DE is projected to decrease by 4.8 per cent to RM92.3 billion, mainly due to lower DE allocation by the federal government.
"Hence, total expenditure is estimated to grow by 1.5 per cent to RM461.1 billion.
"As a result, the consolidated general government overall deficit is expected to increase to RM76.3 billion or 3.9 per cent of GDP in 2024 after netting off intra-transfers and net lending," according to the report.
Meanwhile, the report noted that the consolidated revenue collection of state governments is estimated to decline by 5.9 per cent to RM35.4 billion in 2024.
"The revenue generated by the states is mainly derived from sales taxes, petroleum royalties, investment incomes and land taxes.
"Sarawak and Sabah remain the largest contributors of consolidated state-generated revenue, followed by Selangor, Johor and Perak," it said.
The MoF said both direct and indirect tax collection is projected to record RM11.4 billion or 32.4 per cent of consolidated revenue.
Additionally, the ministry said the consolidated financial position of the NFPCs is anticipated to record a lower current surplus of RM24.6 billion in 2024 due to the moderation in revenue collection.
"The revenue is estimated to record RM490 billion, accounting for 25.2 per cent of GDP in 2024, with revenue from the oil and gas subsector expected to decline due to narrower profit margins, and challenging conditions in the refining and petrochemical sectors," said the report.
-- BERNAMA
