Hornbill Unleashed

May 24, 2017

Idris Jala says Putrajaya on track to achieving fiscal balance by 2020

Filed under: Politics — Hornbill Unleashed @ 8:01 AM

Idris said that Pemandu is also carefully managing Putrajaya's debt-to-GDP ratio. — Picture by Saw Siow FengMalaysia’s fiscal deficit had dropped to 3.1 per cent last year and the government is on track to achieving its target of a fiscal balance by the year 2020, Pemandu Associate Sdn Bhd chief executive said today.

Datuk Seri Idris Jala added that the country’s fiscal position has improved compared to 2009 when the deficit was at 6.7 per cent back in 2009.

“We were clear that we wanted to ensure growth did not come at the expense of the government’s fiscal position. We have reduced the fiscal deficit from 6.7 per cent in 2009 to 3.1 per cent in 2016.

“Here, the government maintains its target of achieving its target of fiscal balance by 2020,” he said in the National Transformation Programme (NTP) Annual Report 2016 released today.

The NTP was launched in 2010, comprising the Economic Transformation Programme and the Government Transformation Programme, to improve the government’s delivery system and to drive Malaysia towards high-income status by 2020.

He said that Pemandu is also carefully managing Putrajaya’s debt-to-GDP ratio.

GDP refers to the Gross Domestic Product.

“In 2016, our debt-to-GDP was 52.7 per cent, within its self-imposed debt ceiling of 55 per cent of GDP,” he added.

In March, international research house BMI Research commended Putrajaya  for its ongoing efforts to curb government spending through further subsidy cuts despite continued opposition and political risk with general elections on the horizon.

The Fitch Group unit predicted that if the trend continues, Malaysia will be able to strengthen its fiscal position to 3.0 per cent of its GDP this year compared to 3.1 per cent in 2016.

It noted that the government has made savings from spending on subsidies since rolling out the rationalisation programme seven years ago, with the latest figures showing just RM3.7 billion on subsidies in the third quarter last year compared to RM17.5 billion in the last quarter of 2013.

BMI noted the recent removal of cooking oil subsidies from Budget 2017 and the government’s firm stance against reintroducing sugar subsidies removed four years ago “despite protests by various political parties”.

Source : The Malay Mail Online


1 Comment »

  1. 2019 Bankrupt

    2020 fully recovered

    Comment by tigeryk — May 24, 2017 @ 7:39 PM | Reply

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