KOTA BARU – Most countries, including Malaysia, are facing a large budget deficit and financial problems due to the Covid-19 pandemic, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
However, he said, Malaysia’s forecast deficit – at 6% of the Gross Domestic Product – is among the lowest compared with those of other countries.
“The reality is that the whole world is facing constraints and large deficits. In fact, even oil-producing nations are experiencing deficits.
“Some countries are recording budget deficits of about 10%, and even up to 15%.”
Mustapa said this is due to extreme economic challenges as the world battles its largest-ever health crisis.
“That is today’s reality, and it’s not something that can be hidden away.
“It is the biggest economic challenge facing Malaysia and other countries…. We are in debt as our revenue has fallen, while our needs have increased, and, thus, require a larger expenditure, as the government’s priority is to look after the needs of the people.”
Regardless of the situation, he added, the government will continue to work hard to revive the country’s economy by devising various strategies, especially in creating jobs and empowering micro enterprises.
Last month, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz was reported as saying that Malaysia’s fiscal deficit is projected to rise to 6% of GDP this year, from an earlier estimate of 5.4%, following the implementation of the Strategic Programme to Empower the People and Economy. – Bernama, April 18, 2021
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