According to Deputy Finance Minister Lim Hui Ying, the government is working to reduce the fiscal deficit to 3% in the next few years.
This is a bold target to strengthen the country's financial position under the leadership of Dato' Seri Anwar Ibrahim.
The fiscal gap is expected to decline to 4.3% of GDP in 2024, compared to 5.0% last year, and further decline to 3.8% by 2025.
Government Strategic Measures
The government will focus on smarter spending, including setting up a special committee to rationalize statutory bodies and avoid detrimental duplication of functions.
In addition, the government intends to increase tax revenue and reduce overall subsidies to be more targeted and effective, ensuring that national spending provides maximum impact.
Other reforms also involve new laws to improve the procurement and management system of state-owned companies, while increasing transparency in public financial management.
Stability of the Ringgit Value
On the issue of the value of the ringgit, Lim stressed that Bank Negara Malaysia will closely monitor the exchange rate to avoid large fluctuations that could affect the economy.
This effort also includes collaboration with major trading partners to encourage the use of the ringgit in international trade.
With the implementation of this prudent fiscal policy, the government remains committed to supporting economic activities and protecting the well-being of the people, in line with the aspirations of the Civil Economy framework.
Will this 3% target be reached? With the uncertainty of the global economy, this achievement is a challenge, but it shows the government's determination to strengthen the country's economy.
