Budget 2024: Targeted Electric Subsidies to Continue, RM40/month Bill Rebate for Over 142k Poor Households

Prime Minister Datuk Seri Anwar Ibrahim during his tabling of the Budget 2024 in the Dewan Rakyat today announced that the government is planning to further improve the targeted subsidies for electricity usage.

He asserted that in 2022, the trend shows that 10% of the highest electricity usage received a 50% subsidy, while 50% of users with the lowest usage only received a 10% subsidy.

Hence, Anwar said that this was why starting this year, the government has introduced targeted subsidies by abolishing subsidies for the 10% highest electricity usage.

At the same time, the government continued the subsidy given to 90% of users. In this targeted approach, RM4.6 billion can be saved with a projection of RM20 billion electric subsidy. The government also still bear the electric subsidy of RM16 billion in 2023 for households and SMEs.

Hence, under Budget 2024, the government will further improve this targeted electric subsidy approach and hopes that this decision will give the right signal to users to practise energy efficiency in daily electricity usage.

The government has also agreed to provide electricity bill rebates of up to RM40 a month to the hard poor with an allocation of RM55 million that would benefit more than 142,000 households. Furthermore, the government has also agreed to give an exception for deposit payment for electricity bills under own name.

So, what do you guys think of the continuation of targeted electricity subsidies? Share your thoughts with us in the comments.

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