Govt studying best measures to reduce budget deficit

KUALA LUMPUR - The government is studying the best measures to reduce the budget deficit which will be announced during the full budget presentation in February 2023.

Deputy Finance Minister Datuk Seri Ahmad Maslan said the budget deficit is estimated at 5.8 per cent of the Gross Domestic Product (GDP) for 2022 and its forecast for 2023 will be announced later.

Ahmad said the government would not be imposing new taxes that would burden the people. However, it is necessary to find alternatives to increase the government’s income to ensure the country's economy continues to grow, he said when met at Parliament building today.

Hence, higher debts were taken on to ensure that provisions for the development and economic well-being of the people could be met.

"We have to deal with a deficit budget when we were facing the pandemic over the last two years and it was so difficult to find new income for the government.

"This is also one of the reasons we had to raise the statutory debt rate from 55 per cent of GDP to 60 per cent, and then 65 per cent,” he said.

However, he said the government does not intend to increase the national debt, which is currently 60 to 61 per cent of GDP.

On the re-introduction of the Goods & Service Tax, he said this was not brought up by the unity government. - BERNAMA