5 PCT FISCAL DEFICIT TARGET SHOULD BE IN LINE WITH EXPLORATION OF NEW ECONOMIC ACTIVITIES - OPPOSITION LEADER

KUALA LUMPUR, Feb 27 (Bernama) -- The projected fiscal deficit target of five per cent of gross domestic product (GDP) in 2023 should be in line with the exploration of new economic activities to ensure that the government's debt can be reduced, said Opposition Leader Datuk Seri Hamzah Zainudin from Perikatan Nasional (PN).

At the debate session on the Supply Bill 2023, he suggested the current economic base can no longer depend solely on the commodity sector and Petronas’ contributions.

“This is a policy that I think should be thought about. How can we find economic growth through the new determined revenue so that the target can be achieved.

“This year's budget should be a ‘game changer’ for the government to determine new markets to increase national income,” he said.

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On Feb 24, Prime Minister Datuk Seri Anwar Ibrahim who is also the Finance Minister presented Budget 2023 and stated that the government is committed to reducing the government debt by projecting a fiscal deficit of five per cent of GDP for 2023, compared to the official projection of 5.5 per cent announced in October last year.

He said the government also aims to achieve a fiscal deficit of 3.2 per cent by 2025. Anwar presented Budget 2023 with a proposed allocation of RM388.1 billion, involving an estimated operating expenditure of RM289.1 billion and RM99 billion for development including RM2 billion in contingency savings.

-- BERNAMA