Govt spent 322% more on subsidies in 2022

The federal government only spent RM13.134 billion on subsidies in 2021, which increased by RM42.309 billion last year.

PETALING JAYA: The federal government spent some RM55.443 billion on various subsidies last year, an increase of 322.1% compared to 2021.

According to the 2022 Auditor-General’s Report, Putrajaya spent RM13.134 billion on subsidies in 2021, which was RM42.309 billion less than last year.

The highest subsidy expenditures went to petroleum products – at RM45.184 billion, or 81.5% of the total expenditure, said the report, released today.

The report said the finance ministry spent RM120.174 billion, or 40.8% of the government’s total operational expenditure for 2022, a 64.5% increase compared to the RM73 billion spent in 2021.

It said this was due to the amount of funds spent to subsidise petroleum products. In comparison, Putrajaya only spent RM10 billion on this in 2021.

In June, Prime Minister Anwar Ibrahim said the government was working on implementing targeted subsidies as soon as possible.

Economy minister Rafizi Ramli expected the government to save at least US$1 billion (RM4.73 billion) to US$2 billion (RM9.47 billion) a year from its shift to targeted subsidies, that could begin as soon as the second quarter of 2024. - FMT