KUALA LUMPUR (Oct 6): The government spent RM13.13 billion in subsidy expenditure in 2021, an increase of RM8.48 billion or 181.9% compared with RM4.66 billion in 2020, according to an auditor general's report released on Thursday (Oct 6).

Among the highest subsidy expenditures were for petroleum products, amounting to RM10.02 billion or 76.3% of the total expenditure, the report said.

This was followed by the toll compensation subsidy which amounted to RM1.34 billion, which is an increase of RM285 million or 27.1% compared with RM1.05 billion in 2020.

“This expense is the amount of compensation that must be paid to the highway concession company following the granting of toll discounts and the postponement of toll rate increases involving 21 highways,” said Auditor General Datuk Seri Nik Azman Nik Abdul Majid in the final series of the Auditor General's Report for 2021.

He said subsidies for cooking oil, food aid and food supplements amounted to RM1.05 billion in 2021.

“The cooking oil subsidy is for cooking oil sold in 1kg polybags at a price of RM2.50 per packet. This subsidy expenditure increased by a total of RM450 million or 75.2% following the increase in the palm oil price,” he added.

According to the 2022 Fiscal Outlook and Federal Government Revenue report by the Ministry of Finance, the 2021 estimate for federal government subsidies and social assistance was revised to RM16.7 billion. This compares with RM19.77 billion in 2020. The actual figure for 2021 will be published following the 2023 Federal Budget announcement on Friday (Oct 7).

For more AG’s Report 2021 stories, click here.