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The announcement comes as anti-GST activists converged outside the parliament (pic, right).
Najib is currently presenting a RM264.4 billion budget for 2014. He estimated that the fiscal deficit will be at 3.5% with revenue expected at RM224 billion.
Among the highlights of his speech are:

• The domestic economy is projected to grow at a stronger pace of between 5.0% to 5.5%.
• The unemployment rate is estimated at 3.1% while the inflation rate will remain low at between 2% and 3%.
• Goods exports are expected to grow 2.5% due to improving external demand while on the supply side, the construction sector is expected to  grow 9.6%.
• The per capita income for 2014 is expected to reach RM34,126 compared with RM24,879 in 2009, an increase of 37% over six years.
•  It is possible that Malaysia will achieve developed nation status much earlier than 2020.
• RM 217.7 billion is for operating expenditure while RM46.5 billion for development expenditure.
• RM63.6 billion allocated for emoluments and RM36.6 billion for supplies and services.
• RM29 billion allocated to the economic sector.
• RM10.5 billion allocated to the social sector for education, training, health, welfare, housing and community development.
• RM3.9 billion allocated to the security sector, RM1.1 billion for general administration, RM2 billion for contingencies.
• In 2014, Federal Government revenue collection is estimated at RM224.1 billion, up RM4 billion from 2013.
• Federal Government fiscal deficit expected to further decline from 4% of GDP in 2013 to 3.5% in 2014.
• RM1.2 billion allocated for operating and development expenditure in 2013 and 2014 to implement Visit Malaysia Year 2014 programmes, targeting 28 million tourists.
• 2015 announced as the Year of Festivals.
• To promote the tourism, RM2 billion will be provided to the Special Tourism Infrastructure Fund under Bank Pembangunan, to finance cost of building hotels, resorts and theme parks and purchase & replacement of equipment related to the tourism.
• No more tax filing for individual who pay tax (PCB) on a monthly basis.
• Corporate tax: reduced from 25% - 24%
• Sales tax abolished, Goods and Services Tax to be implemented.
• No GST on essential items such as cooking oil, spices, salted fish, rice, flour.
• GST also exempted on electricity (partial exemption up to 200 units), piped water supply, public transportation.
• Update on personal income tax: Highest income bracket increased from RM100,000 to RM400,000. Tax for this income bracket reduced from 26% to 24-25%.
• Buying and selling houses, renting, not affected by GST.
• 300,000 people who earn RM4,000 a month now no longer to pay income tax.
• RM600 miilion grant for institutes of higher learning to encourage the publishing of international-class research papers.
• Education: RM450 million to maintaining and improving old schools - SK, SJK(C), SJK(T), MARA, Sekolah Agama included; RM168 million for new schools; RM209 million for improving the quality of teaching in Malaysian schools.
• 1Malaysia Book Voucher Program: RM250 for each student available
• Transport: Subsidies for rural train commutes: For communities in rural Pahang and Kelantan.
• Transport: RM15.3 billion allocated to centralise taxi industry administration and improve services industry-wide.
• RM4.1 billion allocated for rural community development, especially in rural Sabah and Sarawak.
• RM179 million to repair low cost homes nationwide.
• Anti-crime measures: RM8.8 billion allocated to the police, RM13.2 billion allocated for armed forces.
• CCTV to be installed in 25 crime hotspots.
• RM200 million allocation for police to purchase additional equipment including firearms and forensic van.
• National defence: RM75 million allocated to Eastern Sabah Security Command.
• Army vets get RM8 million for 20,000  ATM vets
• Healthcare: RM22.1 billion allocated to improving public healthcare system.
• 50 new 1Malaysia Clinics in 2014, 6,000 new nurses to be trained.
• RM3.3 billion allocated to providing the best medical supplies to public healthcare institutions.
• Sugar subsidy reduced by RM0.34 as of October 26, 2014. The new price is RM2.84 per kg.
• Allocations for the disabled: RM441million to develop amenities and provide help to the disabled.
• Property: Government to revise Real Property Gain Tax or RPGT:
  -30% for properties held for 3 years or less.
  -20% (4 years) 15% (5 years and beyond)
  -RPGT for non-citizens: 30% (1-5 years), 5% (5 years and above).
• Affordable housing: RM578 allocated to the National Housing Department to develop 16,473 residential units.
  -PR1MA to construct 80,000 new residential units at 20% lower than market prices.
  -subsidies for private developers to encourage construction of low and medium cost housing units.