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Govt may cut Budget 2021 spending on lower revenue

THE government will likely reduce spending in the upcoming federal budget as concerns over a new wave of Covid-19 cases are expected to put further pressure on revenues already hurt by low crude oil prices.Putrajaya had rolled out stimulus packages worth RM305 billion since the start of the pandemic and had raised its debt-to-GDP ceiling to 60% for the first time in over a decade last August.Last year’s budget set aside RM297 billion for both operating and development expenditures, a drop of 5.6% compared to Budget 2019, due to expectations of a revenue shortfall by about 7%.

Tough side of house-buying

Bernamapix PETALING JAYA: Since home ownership is essential for financial security, rent-to-own schemes should be given greater emphasis. National House Buyers Association (HBA) secretary-general Datuk Chang Kim Loong told theSun that such schemes would help low-income earners to achieve their dream of owning their own property. “HBA has in the past pushed for both the government and private developers to implement this social housing scheme to help the B40 and M40 to purchase their first house.” He also called for more awareness on the financial implications of buying a house. While home ownership by low-income households is a priority, issues such as financial management should not be left out as owning a home is among the biggest financial commitments compared with renting.

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