The government had to balance between managing a tight fiscal deficit and spurring economic growth in Budget 2019, says Economic Affairs Minister Datuk Seri Azmin Ali (pic).
“We have seen a few initiatives under the Budget 2019 in the education, housing and health sectors that give focus to the B40 and M40 groups.
“With this focus, we are able to increase the household income of these groups and this will generate growth that would enable the country to face economic challenges,” he told reporters at the Parliament lobby on Friday (Nov 2).
He said all ministries are responsible for ensuring that their allocation would reach those in the target groups without any leakages.
“One interesting thing in Budget 2019 is that we place governance as one of the pillars, as presented in the Mid-Term Review,” he said.
He added that such an emphasis on governance would build up the confidence of foreign and local investors in the country.
Finance Minister Lim Guan Eng, in tabling Budget 2019 in Parliament on Friday, announced that Malaysia’s fiscal deficit in 2018 will reach 3.7 percent.
He claimed the increase was due to the expenditure commitment by the previous administration.
He also announced that the government was committed to implementing fiscal consolidation steps to reduce the deficit to 3.4% of the GDP by 2019, 3% by 2020, and 2.8% by 2021.