Ministry of Finance to monitor national deficit of 6.5% from GDP in 2021 – PM Ismail

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PUTRAJAYA DIS.13: The national productivity income has recorded an increase of 8.9 per cent to RM210.4 billion while the expenses have increased by 4.9 per cent to RM307.6 billion by end of November 2021.

Prime Minister, Datuk Seri Ismail Sabri Yaakob who chaired the Fiscal Policy Committee (FPC) Meeting today said the committee was with the opinion that the deficit of 6.5 per cent from the Gross Domestic Product (GDP) in 2021 would be reviewed and the Ministry of Finance would continue to monitor the performance and its development.

“The meeting agenda includes several issues concerning the current economic situation and the Federal Government’s finance. The performance and the fiscal situation are among the meeting’s agenda discussed including the current financial performance of the Federal Government,” Ismail said in a statement here today.

The third FPC meeting was attended by the Minister of Finance, Minister in the Prime Minister’s Department (Economy), Chief Secretary to the Government, Treasury Chief Secretary, Director General of the Economic Planning Unit (EPU) and Governor of Central Bank of Malaysia.

Prime Minister Ismail added, based on the economic recovery’s prospect will be better in 2022, and measures taken in 2022 Budget, the fiscal deficit is targeted to be less than six per cent from the GDP.

“The renewal of the institution initiative specifically the implementation of the Fiscal Responsibility Act (FRA), Mid-Term Revenue Strategy (MTRS) and Public Expenditure Review (PER) are among the main policy measures to support these efforts.

“The government is committed towards the deficit target like what has been outlined in the 12th Malaysia Plan that is 3.5 per cent via the Mid-Term Fiscal Planning and the Mid-Term Fiscal Renewal Initiative compared to the GDP in 2025.

“The Committee has studied several proposals that will improve the national financial situation and the fiscal sustainability when the economy returns to trajectory growth before the COVID-19 hits the country,” Ismail said.-Malaysia World News

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