 | Email this article |
 | Print article |
 | Feedback |
(KUALA LUMPUR) Malaysia's budget deficit this year will be higher than the 4.8 per cent of gross domestic product (GDP) planned after a second fiscal stimulus package is introduced, the country's finance minister said.
The government has said that it will implement a second package to boost the economy after RM7 billion (S$2.9 billion) was reallocated to boost the economy, largely from savings due to reduced petrol subsidies.
'It (the fiscal deficit) all depends on the fiscal pump priming that we are going to do,' Najib Razak, who is deputy prime minister and finance minister, said yesterday, according to state news agency Bernama.
So far, no details have emerged of the new spending package and Mr Najib has set up a suggestions page on his blog (www.1malaysia.com.my).
Many economists were already forecasting that the budget deficit for this year would exceed the planned 4.8 per cent of GDP.
Royal Bank of Scotland said last week that investors should go short on Malaysian debt due to the likelihood of a credit ratings downgrade amid a slowing economy and planned additional spending.
It saw the deficit at 5 per cent of GDP this year. -- Reuters
No comments:
Post a Comment