ID :
18055
Thu, 09/04/2008 - 17:21
Auther :
Shortlink :
http://m.oananews.org//node/18055
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M'SIA CONFIDENT OF REDUCING FISCAL DEFICIT TO 3.6 PCT NEXT YEAR, SAYS PM
KUALA LUMPUR, Sept 4 (Bernama) -- The Malaysian government is confident of reducing the fiscal deficit to 3.6 per cent next year from the projected 4.8 percent this year, Prime Minister Abdullah Ahmad Badawi said Thursday.
He said the government would implement various economic approaches to trim
down the deficit.
The deficit had swell to RM9.6 billion for the period between January and
June 2008 due to the increase in the government's operational and development
expenditures, he said.
A surplus of RM975 million was recorded during the same period last year,
he
said.
"Higher operational and development expenditures will cause the
government's
fiscal deficit to spiral to 4.8 percent this year. This is a one-off deficit
this time, only for this year.
"With the economic approaches we are to take for next year, we will bring
down the deficit to 3.6 percent," said Abdullah, who is also finance minister,
to reporters after chairing the national finance council meeting.
Abdullah said: "If it is not for our prudent financial management to reduce
the deficit since before, we will not be able to do what we have proposed in the
2009 Budget."
The prime minister said he was not disappointed with views expressed by
certain economists who felt the 4.8 percent fiscal deficit was too high.
"I am not disappointed over the views expressed by economists after
hearing
the budget announcements on Aug 29 because we have taken into account all these
aspects," he said.
Asked on the weakening ringgit, Abdullah said it was important for the
ringgit to be stable to allay the people's worries.
"At the moment, the ringgit's value seems to have depreciated, but it has
not weakened to a worrying level. We don't want the people to be in a panic
state.
"When our ringgit value appreciated before, there were all sorts of
pressures to do this and that. That's why we are very cautious on matters
pertaining to our ringgit value.
"Most importantly, eventhough the ringgit value fluctuates, it must remain
stable," he added.
He said the government would implement various economic approaches to trim
down the deficit.
The deficit had swell to RM9.6 billion for the period between January and
June 2008 due to the increase in the government's operational and development
expenditures, he said.
A surplus of RM975 million was recorded during the same period last year,
he
said.
"Higher operational and development expenditures will cause the
government's
fiscal deficit to spiral to 4.8 percent this year. This is a one-off deficit
this time, only for this year.
"With the economic approaches we are to take for next year, we will bring
down the deficit to 3.6 percent," said Abdullah, who is also finance minister,
to reporters after chairing the national finance council meeting.
Abdullah said: "If it is not for our prudent financial management to reduce
the deficit since before, we will not be able to do what we have proposed in the
2009 Budget."
The prime minister said he was not disappointed with views expressed by
certain economists who felt the 4.8 percent fiscal deficit was too high.
"I am not disappointed over the views expressed by economists after
hearing
the budget announcements on Aug 29 because we have taken into account all these
aspects," he said.
Asked on the weakening ringgit, Abdullah said it was important for the
ringgit to be stable to allay the people's worries.
"At the moment, the ringgit's value seems to have depreciated, but it has
not weakened to a worrying level. We don't want the people to be in a panic
state.
"When our ringgit value appreciated before, there were all sorts of
pressures to do this and that. That's why we are very cautious on matters
pertaining to our ringgit value.
"Most importantly, eventhough the ringgit value fluctuates, it must remain
stable," he added.
