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Najib: Deficit to rise with pump priming - Najib Razak

Najib: Deficit to rise with pump priming

By Thursday January 29th, 2009 No Comments

KUALA LUMPUR: Malaysia’s fiscal deficit will be revised upwards when the Government introduces a second economic stimulus package, Deputy Prime Minister Datuk Seri Najib Razak said.

The quantum of increase in the fiscal deficit will depend on how much the Government is going to pump into the package, he said,

“It depends on the pump priming we are going to do,” said Najib, who is also the Finance Minister.

The fiscal deficit was projected at 4.8% when the first RM7bil stimulus package was announced last year, he said. “We are mindful of the fiscal deficit level and do not want to see it too high,” he said during the launch of the Peugeot 308 yesterday.

Najib declined to say when details of the second stimulus package would be announced and how much the deficit figures would be.

Najib said more than 70% of the RM7bil stimulus package designed to reinforce and stimulate the economy has been released by the various ministries and agencies.

A total of 4,667 projects identified under the package for education and health have already been awarded; 2,224 are education projects valued at RM200mil requiring upgrading, rehabilitation and maintenance and 2,443 are health projects costing RM200mil.

“The ministries and agencies have been directed to ensure that projects identified for implementation under the package are implemented as soon as possible and are completed this year,” he said.

Since the construction sector has a high multiplier effect, RM5bil of the RM7bil package has been allocated for small construction and development projects, he said.

These include RM1.2bil for building and maintenance of low-cost houses and the rest for infrastructure, schools, police stations and army quarters.

A sum of RM1bil has been allocated for human capital development necessary to maintain Malaysia’s competitiveness and enhance efficiency of the labour force, he said.

“The Government is monitoring the global situation and domestic economic situation closely and will add pre-emptive measures if the global economy deteriorates further,” said Najib.

Source : The Star

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