KUALA LUMPUR – Budget 2021, to be tabled on November 6, shall add more colours to the country’s recovery path with the government remains supportive of expansion and growth.
“As you know for this year, the government has already stated that we will have a fiscal deficit of 5.8%-6% and that is to be expected because fiscal measures are necessary,” said Bank Negara Malaysia (BNM) deputy governor Jessica Chew during a virtual briefing for business editors in conjunction with the release of the central bank’s Financial Stability Review for the first half of 2020 (1H20) today.
Chew said the measures are critical in the current environment to support the country’s recovery and the government remains committed to consolidation over the medium term, with a strong track record of delivering results over the medium to long term.
She said while the central bank is concerned over the recent increase in the number of new Covid-19 cases, it is confident of the measures introduced by the government, coupled with an open economy advocated by the country, which had been instrumental in employment creation and income growth.
“By and large, the economy is operating unlike before. And the external sector is also recovering. So, we might see in some countries a resurgence in the number of cases but, by and large, if you look at the macro numbers, they are generally improving globally.”
Malaysia recently raised its debt-to-gross domestic product (GDP) ceiling to 60% from 55%, and the revision was made following anticipations of a higher fiscal deficit this year, amid a fiscal injection into the economy, at 3.6% of GDP.
Putrajaya has rolled out stimulus packages worth RM305 billion since the start of the pandemic to help the people and businesses tide over the impact of COVID-19.
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