ECONOMY Minister Rafizi Ramli said more information on financing the RM10 bil allocation for a more than 13% increase in civil servants’ salaries starting next Dec 1 will be presented in the Budget 2025.
He said the matter of the salary increase was under the responsibility of the Prime Minister Datuk Seri Anwar Ibrahim and how the allocation would be financed would be explained in the budget.
“The Prime Minister should ask for salary increases (for civil servants) because it is under the Prime Minister’s business,” he said to the media at the INTAN Minister’s Conversation (IMC) 2024 programme organised by the National Institute of Public Administration (INTAN).
Meanwhile, some analysts are questioning the funding of this exercise which may cost the government a whopping RM10 bil.
Thus, the government’s proposal to increase civil servants’ salaries by over 13% has sparked concerns among economists regarding fiscal prudence.
While Dr Mohd Afzanizam Abdul Rashid sees it as a morale booster, he highlighted the need for fiscal consolidation.
He emphasised the importance of maintaining purchasing power and a high-performance culture.
Meanwhile, Dr Shankaran Nambiar questions the timing and fiscal implications but he suggested that reallocating funds from subsidy rationalisation could offset the burden.
Anwar defends the move, aiming to raise civil servants’ minimum income above RM2,000 monthly. – May 4, 2024
