Malaysia is on track to achieve its projected fiscal deficit of 3.0 per cent this year, said Treasury Secretary-General, Tan Sri Mohd Irwan Serigar Abdullah.
Slamming a media report which stated that the country's fiscal deficit widened to RM30.5 billion for the first five months of the year and regarded such reports as 'baseless argumentation', he said the Finance Ministry had a yearly schedule to calculate the deficit when the year comes to an end in December.
"Actually, the deficit estimates still remain. Last year, it was 3.1 per cent and this year it is 3.0 per cent. This is because it is based on one-year calculation...the revenue estimated for December, only then can we calculate the deficit for the whole year.
"Some months, some revenue will decrease a little and so on. We cannot use that as the fiscal deficit for the whole year. We calculate it yearly. If the target is 3.0 per cent, it stays," he said when met at the Finance Ministry's Hari Raya Aidilfitri Open House here today.
The event was graced by Prime Minister Datuk Seri Najib Razak and his wife, Datin Seri Rosmah Mansor.
Mohd Irwan Serigar was commenting on a news report quoting Citi Research that the country's fiscal deficit widened to RM30.5 billion compared with RM26 billion in the previous corresponding period.
To another question, he said the fiscal deficit target was on track as the scheduled payment like Petronas dividends would come in the second quarter.
"We go to market to raise government bonds. Sometimes the revenue goes down, but certain months, the deficit is way smaller than whole but we maintain at an average of 3.0 per cent.
"This is nothing to worry. You see, our exports rose 32.5 per cent in May. The inflation declined to 3.9 per cent from April's 4.4 per cent. Bank Negara's international reserves strengthen further So, our economy looks good and we are going to have a good budget this year," he added.
"Of course, the report is not true. We have to look at the whole year. Then, we will show the figure. In fact, the Inland Revenue Board has collected RM55 billion and I am monitoring it every day. The government also has another revenue, like we sell Bakun, and we get income. We also sold some land. So the revenue is still intact.
"In fact, we have more revenue now, and that is why I say Budget 2018 will be good for the country," he said.
-- BERNAMA
Bernama
Mon Jul 10 2017
He said the fiscal deficit target was on track as the scheduled payment like Petronas dividends would come in the second quarter.
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