Updated: Tue, 17 Jun 2014 12:00:00 GMT | By The Malaysian Insider : Malaysia

Malaysia on track to cut budget deficit to 3% this year, says Putrajaya – Bernama

Malaysia is on track to trim its fiscal deficit to 3.5% this year, said Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah.


Malaysia is on track to trim its fiscal deficit to 3.5% this year, said Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah.

"If we achieve higher Gross Domestic Product (GDP) growth, the deficit would be reduced even further," he said on the sidelines of an inaugural townhall session regarding the second series of the 2013 Auditor General's Report.

Malaysia trimmed its fiscal deficit to 3.9% of GDP last year.

The country aims to further reduce the budget gap to 3% in 2015, before achieving a balanced budget by 2020.

According to Irwan, the country was also on track to hit a 4.5-5.5% GDP growth this year.

Private investments were showing a record double-digit growth, with sectors such as construction demonstrating robust momentum, he said.

"Exports are also improving. We should perform better in GDP growth if there are no major problems happening in the region," he said.

Asked if the government planned to impose the goods and services tax (GST) on fuel, he said the Finance Ministry is still studying the issue and would come out with a list of goods to show which were exempted from the GST.

The ministry would beef up the enforcement and take stern actions against those retailers and speculators taking advantage of the GST for profiteering purposes, he said.

3Comments
Jun 17, 2014 8:34PM
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The issue is not whether we can achieve a balance budget or not. the issue is whether the money spend from borrowings are efficiently managed and obtain the maximum benefit. last year deficit of 3.9% could have been lower if not for wastage and corruption. I am not a fan of a balanced budget as we could look at it that the country does not spend for growth. BTW except for billionaires of the world, who would buy or fund infrastructure project cash? Even Microsoft have debts and even our southern neighbor have Debt to GDP ratio of more than 100%.
Jun 17, 2014 8:47AM
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A surplus-budget or even a balanced-budget is not necessarily good for the country & its people as it is relatively less efficient as compared to deficit-budget spending especially on national development projects involving long-term infrastructure building.   A fair amount of fiscal deficit spending of up to a maximum of about 10% would be better for increased national development.  Expenditures, through fiscal deficits, on infrastructure with long term life spans such as roads, rails, ports etc should be partly borne by the future generations as well as they will share the benefits of those infrastructure.
Jun 17, 2014 10:24AM
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Made in Malaysia product should be the best in the world! Govt. should emphasize that our exporters produce the best! Stop doing something good...do the best! This is the way to be a global player and to make the most from our hard work and to keep our currency and e****my strong! Malaysians must be innovative!
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