Malaysia raises budget deficit prediction

19/07/2021 19:14

Malaysia's budget deficit is expected to grow to 6.5-7 percent of Gross Domestic Product (GDP) this year from a previous forecast of 6 percent after taking into account recent economic stimulus packages announced by the nation’s Government.

Malaysia raises budget deficit prediction ảnh 1

COVID-19 vaccination in Kuala Lumpur, Malaysia (Source: APF/VNA)

Kuala Lumpur(VNA) – Malaysia's budget deficit is expected to grow to 6.5-7 percent of Gross Domestic Product (GDP) this year from a previous forecast of 6 percent after taking into account recent economic stimulus packages announced by the nation’s Government.

In an inclusive interview with the South China Morning Post (SCMP) on July 19, Malaysian Finance Minister Tengku Zafrul Abdul Aziz said the Malaysian government is ready to increase fiscal space to support the economy and the people.

He noted the deficit, which is going to reach 7 percent, is not about the size of the deficit but the ability to borrow and the size of the reserves.

According to the official the nation’s highest ever deficit was in 2008-2009, at 6.7-6.9 percent.

He said the Malaysian Government’s related support, given the fiscal constraints that we have, is adequate. He emphasised the fact that the Government has announced a food assistance programme for all sectors in society. In addition, there is a 10 billion RM direct financing programme under the National People's Well-Being and Economic Recovery Package (PEMULIH) to offer comprehensive support to people./.

VNA