FPC discusses fiscal consolidation measures

The Fiscal Policy Committee (FPC) deliberated on fiscal consolidation measures in the strive to achieve a near-balanced budget in 2020.

The Finance Ministry said the FPC scrutinised the country's fiscal position and medium-term economic growth, as well as the fiscal risks, including the unexpected external liabilities to ensure that the government's exposure would be under control and minimal.

“Efforts will be focused to increasing efficiency and minimising leakages in revenue collection and expenditure.

“All government departments and agencies need to be more committed and increase their productivity in an effort to provide the highest standard of service to the people,” it said in a statement issued after the FPC meeting here.

The ministry said the 2018 Budget, which would be presented on Oct 27, would focus on efforts to increase the people's earnings, boost investments, especially in public infrastructure and high-impact projects, and spur the digital economy through creativity and innovation.

“With this, the target to double the country's economy to nominal gross domestic product (GDP) of RM2 trillion can be achieved.

“Hence, the government will continue to ensure that its financial position remains strong in the long run to support the nation's economic development and ensure the well-being of the people,” it said.

Having achieved GDP of 5.6% in the first quarter of this year, Malaysia expects to register GDP of between 4.3% and 4.8% this year as targeted and bring down its fiscal deficit to 3% of GDP.