Govt to adopt net disposable income in aid distribution, says PM

Govt to adopt net disposable income in aid distribution, says PM

Anwar Ibrahim says the new assessment method will reduce exclusion errors when aid is given out and make the system more equitable.

Prime Minister Anwar Ibrahim said net disposable income will take into account the basic minimum living expenditure, which refers to the cost of living necessary for a decent standard of life.
PUTRAJAYA:
The government will shift to a more meaningful assessment of poverty, with the concept of net disposable income (NDI) as the basis for identifying target groups for aid distribution, says Prime Minister Anwar Ibrahim.

He said using NDI would reduce exclusion errors and make aid distribution more equitable.

“NDI will take into account basic minimum living expenditure, which refers to the cost of living necessary for a decent standard of life, including expenses for food, clothing, accommodation, utilities and transportation.

“This will vary by location and household demographics,” he said during his speech at a national symposium on eradicating poverty here today.

Themed “Bersama, berdaya dan mampan” (Together, empower and sustainable), the symposium outlined five initiatives – improving assessments, reforming poverty eradication funds, unifying data, changing attitudes and mindsets, and strengthening efforts to end poverty.

Anwar, who is also finance minister, gave his assurance that the Cabinet would seriously consider the findings and input gathered at the symposium.

He said he wants economy minister Rafizi Ramli to compile and summarise all ideas and perspectives shared by the symposium’s panellists and participants.

“If possible, Rafizi will prepare his initial notes by Wednesday so that we can take serious action,” he said.

Anwar said the government is committed to ongoing fiscal reforms as part of its efforts to restructure the economy for sustainability.

He said this includes overhauling subsidy structures in social assistance and poverty eradication programmes to make them more targeted.

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