KUALA LUMPUR( Jan 4): The government may need to extend the deadline for its zero fiscal deficit target, or in other words a balanced budget to 2023, from 2020.
According to Second Finance Minister Datuk Johari Abdul Ghani, the original deadline of a balanced budget was set by the government at a time when oil prices were high.
“At the time when the government prepared for a balanced budget by 2020 it was when oil prices were at US$90 to US$100 per barrel
“… but today because we need to spend in order to stimulate the economy, we need a little bit more time in order to achieve the balanced budget.
“So our original target for a balanced budget is 2020 but we probably need another 2 to 3 years to reach the target, because if we squeeze too fast it may affect the economy, ” he told reporters today at the sidelines of the CIMB 10th Annual Malaysia Corporate day, where he presented the keynote address.
The government has set its fiscal deficit target for 2018 at 2.8%