We must have a Plan B, says finance minister

[superadmin]

KUALA LUMPUR: The government has asserted the importance of increasing the debt ceiling to provide “wiggle room” by which to finance the government’s budget deficit and provide funds for implementing the 12th Malaysia Plan, finance minister Tengku Zafrul Aziz said today.

He said that although the government’s debt ceiling was raised to 65% of gross domestic product (GDP), what was more important was the ability to repay the loan.

“If we were to pull the brake too fast, where we suddenly don’t want to spend or make an expansionary fiscal policy, our economy can’t recover faster than we expect.

“So, the government’s important responsibility is to ensure that its financial position remains stable so that it is ready and able to implement counter-cyclical measures in the event of a crisis,” he said in a special interview with Bernama TV and Astro Awani.

Tengku Zafrul said the government’s revenue projections were not enough for 2022 to fund all the programmes that were announced yesterday in the federal budget, especially for large projects.

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