ID :
79458
Fri, 09/11/2009 - 17:40
Auther :
Shortlink :
https://oananews.org//node/79458
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BUDGET DEFICIT DUE TO GOVT SPENDING TO REVIVE ECONOMY & CONFIDENCE
By Mohd Iswandi Kasan Anuar
PUTRAJAYA, Sept 11 (Bernama) -- The government's budget deficit has been brought about by the lead role it takes from the private sector in stimulating and reviving the people's confidence in the economy during difficult times, Minister in the Prime Minister's Department Nor Mohamed Yakcop said.
During recession the private sector dare not invest hence the government
needs to invest slightly more to boost the people's confidence, particularly
investor confidence, in the country's economy.
" Our country's philosophy on deficit budget is that during difficult times
we have to spend slightly more to bring confidence in our economic system," he
told Bernama after breaking the fast with staff of the Public Private
Partnership Unit in the Prime Minister's Department Thursday night.
The government has projected the budget deficit to hit 7.6 per cent of the
Gross Domestic Product (GDP) this year, the highest level since 1987 due to the
fiscal stimulus packages totalling RM67 billion (US$19.1 billion) in November
last year and March this year.
Nor Mohamed said: " In difficult times we need to spend slightly more and
this causes a deficit."
"Our philosophy is okay. In good times, we reduce the deficit. If possible,
we have a balanced budget," he said when asked to comment on the World
Competitiveness Report 2009/10 released on Tuesday by the World Economic Forum.
According to the report, Malaysia fell three notches to 23rd spot due to the
deficit budget, among others.
For instance, during the 1997/98 Asian financial crisis, the government had
to spend more, resulting in 5.5 per cent higher deficit in the 2000 budget but
after the economy recovered, the government took measures to reduce the deficit
year-by-year from 2000 till 2007 until it dwindled to 3.2 per cent.
" This showed we are careful and very prudent," he said.
Nor Mohamed said during the recessionary period last year and this year,
the government also had to spend slightly more and after the economy recovered,
the deficit level would come down.
" We've our own ways of managing the economy. It's not an issue. The people
who wrote the World Competitiveness Report on Malaysia's position should see our
track record.
" Eventhough we spend slightly more during recession, we will reduce the
deficit when the economy recovers.
" We will adopt the same approach this time and in the years ahead if our
economy slips into recession," he added.
-- BERNAMA
PUTRAJAYA, Sept 11 (Bernama) -- The government's budget deficit has been brought about by the lead role it takes from the private sector in stimulating and reviving the people's confidence in the economy during difficult times, Minister in the Prime Minister's Department Nor Mohamed Yakcop said.
During recession the private sector dare not invest hence the government
needs to invest slightly more to boost the people's confidence, particularly
investor confidence, in the country's economy.
" Our country's philosophy on deficit budget is that during difficult times
we have to spend slightly more to bring confidence in our economic system," he
told Bernama after breaking the fast with staff of the Public Private
Partnership Unit in the Prime Minister's Department Thursday night.
The government has projected the budget deficit to hit 7.6 per cent of the
Gross Domestic Product (GDP) this year, the highest level since 1987 due to the
fiscal stimulus packages totalling RM67 billion (US$19.1 billion) in November
last year and March this year.
Nor Mohamed said: " In difficult times we need to spend slightly more and
this causes a deficit."
"Our philosophy is okay. In good times, we reduce the deficit. If possible,
we have a balanced budget," he said when asked to comment on the World
Competitiveness Report 2009/10 released on Tuesday by the World Economic Forum.
According to the report, Malaysia fell three notches to 23rd spot due to the
deficit budget, among others.
For instance, during the 1997/98 Asian financial crisis, the government had
to spend more, resulting in 5.5 per cent higher deficit in the 2000 budget but
after the economy recovered, the government took measures to reduce the deficit
year-by-year from 2000 till 2007 until it dwindled to 3.2 per cent.
" This showed we are careful and very prudent," he said.
Nor Mohamed said during the recessionary period last year and this year,
the government also had to spend slightly more and after the economy recovered,
the deficit level would come down.
" We've our own ways of managing the economy. It's not an issue. The people
who wrote the World Competitiveness Report on Malaysia's position should see our
track record.
" Eventhough we spend slightly more during recession, we will reduce the
deficit when the economy recovers.
" We will adopt the same approach this time and in the years ahead if our
economy slips into recession," he added.
-- BERNAMA
