Budget 2025 to Address RON95 Subsidy Changes
By Loshinniy Nair S. Baskaran,
1st OCTOBER: The upcoming Budget 2025 is set to propose significant adjustments to the RON95 fuel subsidy scheme. According to Finance Minister, the aim is to enhance the subsidy framework while ensuring financial sustainability and targeted support for lower-income households.
The government plans to revise the current subsidy structure, which has been criticized for its broad-based approach that benefits all consumers, including higher-income individuals. By implementing a more targeted system, the administration hopes to allocate resources more effectively and reduce the fiscal burden on the state.
The changes are expected to include a tiered subsidy mechanism, where assistance is adjusted based on income levels, ensuring that low-income groups receive adequate support while higher-income households face reduced benefits. This shift aligns with the government’s broader objective of fiscal reform and responsible spending.
Moreover, the proposed adjustments come in the context of rising global oil prices, which have placed additional pressure on public finances. The government is committed to maintaining essential services while managing expenditure effectively.
As discussions around the budget unfold, stakeholders, including industry players and consumer groups, are encouraged to provide feedback to refine these proposals. The government aims to strike a balance between supporting consumers and ensuring long-term economic stability.
Overall, the forthcoming Budget 2025 is poised to reshape the RON95 subsidy landscape, reflecting a commitment to equity and fiscal prudence in a changing economic environment, as stated in The Star.
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