GOVT WILL ENSURE 2009 BUDGET DEFICIT IS MAINTAINED AT 4.8 PCT LEVEL

KUALA LUMPUR, Nov 5 (Bernama) -- The government will ensure that the budget
deficit does not go beyond the 4.8 percent forecast for 2009, said Deputy Prime
Minister, Najib Razak.

"We will try to ensure it does not go up beyond a certain level because we
can postpone some projects if necessary. But we will try to ensure the present
budget deficit does not go any bigger than 4.8 percent," Najib, who is also
Finance Minister, told reporters after winding up the debate on the 2009 Budget
at the Lower House of Parliament Tuesday.

He said the 4.8 percent budget deficit was "a deficit that we can live
with."

The government had earlier estimated the budget deficit for 2009 at 3.6
percent but now it would be higher at 4.8 percent.

However, the 4.8 percent for 2009 was same as the budget deficit estimated
for 2008, he said, adding that the American deficit was going to be much
bigger than this.

Asked how the government came up with the RM7 billion figure for the
stimulus package, Najib said it was from the allocation for fuel
subsidies.

"The decline in crude oil prices in the world market has resulted in the
fuel subsidy allocation declining to about RM10 billion from RM21 billion
estimated previously.

"We allocated RM21 billion before for fuel subsidies, now they are about
RM10 billion or so," he said, adding that, the savings were based on crude oil
price at US$70 per barrel. (US$1=RM3.50)

Hence, it is not a new budget as development and operating expenditures
remain the same, said Najib.
-- BERNAMA