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.
"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.