PUTRAJAYA, Oct 17 — The focus on reducing Budget 2024’s fiscal deficit is aimed at boosting investor confidence and spurring economic growth, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, also the Finance Minister, said investors will lack confidence in the government leadership if the national deficit increases further.
“If the deficit continues to swell, potential investors will have no confidence (thinking) the country is being governed by an irresponsible political leadership line-up or government administration,” he said during today’s monthly Finance Ministry assembly.
Referring to the philosophy of 18th-century Scottish economist and philosopher Adam Smith, Anwar said the best way to manage the economy is like managing the economics of the family.
“Swelling debt the children cannot afford to pay means a management failure. Debt which can be handled later is reasonable, especially if the debt can bring growth,” he said.
Yesterday, Opposition leader Datuk Seri Hamzah Zainudin was reported as saying in the Dewan Rakyat that the government is seen as more interested in pursuing a lower fiscal deficit rate in Budget 2024 rather than preparing a budget which helps the people and stimulates economic growth.
On Friday (October 13), Anwar tabled the 2024 Budget, themed ‘Economic Reforms, Empowering the People’, with a RM393.8 billion allocation, the highest budget ever tabled in Malaysian history.
The Prime Minister said the 2024 fiscal deficit is projected to decrease to 4.3 per cent compared to the target of 5.0 per cent this year and 5.6 per cent in 2022.
He acknowledged that not all wishes submitted for Budget 2024 could be implemented but said they would be considered for the next budget.
— Bernama
