KUALA LUMPUR – The government is determined to implement deficit consolidation measure in stages within the medium-term timeframe.
According to the Ministry of Finance’s (MoF) Economic Outlook Report, the measure is needed to optimise revenue and rationalise expenditure.
Following the pandemic, the government had to spend huge amount of money to channel aids and to stimulate the economy to reduce the burdens of the people and businesses.
This has caused the deficit rate to soar to 6.2 percent in 2020, compared to only 3.4 percent in 2019 when the government took 10 years to reduce its deficit since it recorded the rate of 6.7 percent during the Asia Financial Crisis in 2009.
According to the MOF, the move to optimise revenue and rationalise expenditure can be made through the taxation system.
It said, a fair, effective and wider base of taxation system is needed to optimise revenue, meanwhile, expenditure rationalism can be seen in the total structure of government expenditure. -MalaysiaGazette
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