2017 fis­cal deficit tar­get achiev­able

The Sun (Malaysia) - - SUNBIZ -

PETAL­ING JAYA: HSBC Global Re­search ex­pects Malaysia to meet its 3% of gross do­mes­tic prod­uct fis­cal deficit tar­get but sus­pects that overly am­bi­tious rev­enue pro­jec­tions could mean that spend­ing will even­tu­ally have to be trimmed.

In a re­port re­leased yes­ter­day it ex­pects the govern­ment to even­tu­ally trim de­vel­op­ment spend­ing in­stead of op­er­a­tion spend­ing to the longer term detri­ment of the econ­omy.

“It will be hard to curb op­er­a­tional spend­ing – much has al­ready been promised to the pub­lic in terms of larger cash hand-outs via BR1M, and for civil ser­vants,” its econ­o­mist Lim Su Sian said. The govern­ment ex­pects both rev­enue and ex­pen­di­ture to rise 3.4%, to RM219.7 bil­lion and RM260.8 bil­lion re­spec­tively.

Lim also thinks it is too early to de­ter­mine how Bank Ne­gara Malaysia will re­spond with re­gard to mon­e­tary pol­icy.

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