KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim (pic) has given assurance that the government can achieve the target of reducing the country’s fiscal deficit to 5.0 per cent of gross domestic product in 2023 and to 3.2 per cent in 2025.
Anwar, who is also Finance Minister, said there is nothing to dispute regarding the fiscal deficit reduction target given current developments following the tabling of the revised Budget 2023.
“If we study the developments after the budget’s tabling such as increased oil revenue, (payment of) US$1.8 billion from the International Petroleum Investment Co (IPIC) and large investments including from Amazon Web Services and Tesla, there should be no dispute,” he said in winding up the debate on the Supply Bill 2023 in the Dewan Rakyat today.
Anwar, who was Finance Minister from 1991 to 1998 under the premiership of Tun Dr Mahathir Mohamad, added: “I have gone through this process for eight years previously, and the experience would have taught me how to lower the deficit. This is something that we can accomplish.”
He said that based on the latest data he has obtained, the country’s fiscal deficit has already achieved the target set.
“How are we reducing it? It is through measures that we have taken and discussed. If necessary, I will make an announcement in Parliament from time to time,” he said.
Anwar said the long- and medium-term measures that the government will implement to strengthen the nation’s fiscal position include the introduction of the Fiscal Responsibility Act, Luxury Goods Tax and a Capital Gains Tax (for the disposal of unlisted shares by companies).
However, he said the new tax implementation mechanism is still being discussed and it will not burden the consumers to the extent of being uncompetitive.
“We will ensure the negotiations (on the tax implementation) are thorough involving all parties and that the financiers do not feel it is a burden,” he added.
Meanwhile, the Prime Minister also expressed the need to support entrepreneurs and businesses in Sabah and Sarawak through Budget 2023 through a special allocation to the small and medium enterprises (SMEs).
“The government will provide an allocation specifically for the Sabah and Sarawak SME communities in the form of micro loans through Bank Simpanan Nasional (BSN) totalling RM100 million as well as an SME bank loan guarantee facility totalling RM500 million,” said Anwar.- Bernama
