“There is high anticipation that the government will dish out more goodies than usual to create a ‘feel good’ effect as it will be its last budget before the 15th General Election,” CGS-CIMB analysts said in a research note last week.
“Social support, including cash handouts, will likely expand in depth and scope.”
RHB analyst Alexander Chia said the goodies will be “tempered by the lack of fiscal headroom”.
“We think no stone will be left unturned to ensure that the budget offers every assistance to the electorate at large, and to businesses to assist their recovery from the ravages of the pandemic,” Chia said.
However, given rising debts and subsidy bills, new revenue-raising initiatives and postponement of planned expenditures cannot be ruled out, he said.