The first of the two is the economic recovery post-pandemic. But given the fact that the 15th general election is likely to be held soon, there is no doubt this will also be seen as a budget to get the votes.

Call the budget what you like, but “people-friendly” would most probably have the ring that the administration wants. The Barisan Nasional (BN) government will certainly use it to the hilt at the hustings.

Any administration facing an election in the near term would, and BN is no exception.

On paper, the country seems to be on the recovery path already. The economy expanded at an impressive rate of 8.9% in the second quarter, up from 5% in the preceding three months, underscored by strengthened domestic demand and a steady recovery in labour market conditions.

Household consumption rose and so did fixed investments. Output in the services and manufacturing sectors quickened while construction bounced back from a 6.2% decline to a 2.4% growth.

Unemployment was also down to 3.7% in July from 4.2% in January.

However, some challenges remain. Headline inflation rose to 4.4% in July, up from 3.4% in June, thanks largely to increases in the prices of food and other essentials.

The debate on the impact of a weakening ringgit is still raging. While the opposition warns of higher inflation, many are of the view that it will not be as dire as some have made it out to be.

In fact, some have chosen to look on the bright side. A weak ringgit will be good for exports, it will attract more tourists to Malaysia, are among the arguments offered.

There is no doubt that people are feeling the pinch. For instance, they already have to fork out more at the supermarket or the wet market. Tengku Zafrul will have to deal with this in the budget.

Small and medium-sized enterprises (SMEs) are still grappling with the task of getting their business operations back to full swing, and so are plantation and construction companies.

The shortage of labour for these sectors that depend almost wholly on migrant workers has had a severe impact on their recovery.

For instance, the oil palm sector is said to have lost RM10.6 billion in unpicked fruits because of the ongoing labour shortage.

Even the services sector is feeling the labour crunch. Restaurants have cut back on their operating hours.

There have been calls for smoother entry of workers from Indonesia and Bangladesh where most of the migrant workers in Malaysia came from before the Covid-19 pandemic.

Most have returned home without any plans to come back here. It does not help that the reputation of Malaysian employers is anything but good.

While these are important matters that need to be addressed in Budget 2023, it will also be a golden opportunity for the coalition holding the reins in Putrajaya to include it as part of an election campaign strategy, unfortunate as it may be.

Budget 2023 will serve very well as a manifesto for the 15th general election. Artfully exploited, it can be a powerful tool to win hearts and minds, but the potential of it turning into a millstone around the necks of its purveyors cannot be dismissed either.

All the same, the stakes are high.