Prudent and pragmatic, says Ramon

KUALA LUMPUR: The 2019 Budget can be described as prudent and pragmatic, said Asian Strategy & Leadership Institute Centre of Public Policy Studies chairman Tan Sri Ramon V. Navaratnam.

“It’s one of the most challenging budgets but it came out well, especially for the poor,” he told NST Business.

“Indeed the budget has been credible in being mildly expansionary to keep the economy moving forward.”

Ramon said the budget’s trajectory would also sustain dynamic growth and higher employment, adding that the fiscal deficit would rise to 3.4 per cent next year.

He said this reflected a dynamic budget not bound by rigid thinking.

“However, the deficit has to be monitored closely so as not to let it expand too fast too soon to make our economy vulnerable.”

Ramon said the 2019 Budget had been challenging to prepare but the outcome was pragmatic and people-oriented.

“We don’t know the real impact of inflation due to this expansionary budget. However, the expansion is necessary to maintain economic growth.”

He said the budget’s focus was on enhancing the welfare of the lower bottom 40 per cent income group while providing more affordable housing.

“All these measures strengthen the notion of a ‘people’s budget’ or a rewarding budget in return for the people’s support in the 14th General Election. I only hope fiscal and financial integrity is enhanced in the implementation of this budget,” he added.