Federal govt deficit to remain at 2.8% of GDP

Finance Minister Lim Guan Eng says the zero GST, which comes into effect on Friday, will

PUTRAJAYA: The federal government expects the fiscal deficit to remain at 2.8% of Gross Domestic Product (GDP), says Finance Minister Lim Guan Eng.

He told a press conference on Thursday that the project fiscal deficit will increase to RM40.1bil from RM39.8bil, which would maintain the fiscal deficit at 2.8%.

In addition, the government’s current balance (government revenue less operating expenditure) will also remain positive.

Separately, Lim said the zero GST, which comes into effect on Friday, will “return” about RM17bil back to Malaysians for the rest of the year.