KUALA LUMPUR: Malaysia's fiscal deficit is expected to dip to 6 per cent of the Gross Domestic Product (GDP) in 2022, said Prime Minister Datuk Seri Ismail Sabri Yaakob.
He said this was based on the outlook for better economic recovery for 2022 as well as the 2022 Budget measures.
"Institutional reform initiatives in a particular implementation of the Fiscal Responsibility Act (FRA), Medium Term Revenue Strategy (MTRS) and Public Expenditure Survey (PER) were the key policy steps in supporting this effort," he said in a statement after chairing the third fiscal policy committee meeting for 2021.
Ismail Sabri said the committee is also of the view that the reviewed deficit in 2021 of 6.5 per cent of the GDP will be achievable.
The Prime Minister meanwhile said in the medium term, the Government remained committed to its targets deficit as outlined under the Twelfth Malaysia Plan (12MP) which is 3.5 per cent of GDP in 2025.
He added that towards this end, the Committee examined a number of recommendations that will add to the good financial position of the country and fiscal sustainability, after the economy returns to a growth trajectory as forecast before the Covid-19 pandemic struck the country.
"Going forward, a sustainable recovery agenda will be coordinated with initiatives under the 12MP. All efforts in regards to this will be focused on high technology development, innovation and sustainability in high-growth potential sectors framed to catalyse an inclusive and competitive economy for the benefit of the whole Malaysian Family.
"Overall, the effort to help the entire Malaysian Family will be continued, while ensuring the sustainability of the Government financial position," Ismail Sabri said.
Earlier in the statement, the Prime Minister said the fiscal policy committee meeting among others discussed the latest performance of the Federal Government finances.
He said based on performance till the end of November, revenue collection recorded an increase of 8.9 per cent to RM210.4 billion, while total expenditure increased 4.9 per cent to RM307.6 billion.
The meeting was attended by Finance Minister Senator Datuk Seri Utama Tengku Zafrul Tengku Abdul Aziz; Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed; and, Chief Secretary to the Government, Tan Sri Mohd Zuki Ali.
The others who attended the meeting were the Secretary-General of the Treasury, Datuk Asri Hamidon: Director-General of the Economic Planning Unit, Datuk Saiful Anuar Lebai Hussen and the Governor of Bank Negara Malaysia, Nor Shamsiah Mohd Yunus.