Budget expands at the expense of fiscal deficit

Bachelor of Applied Science in Construction Engineering prepares students for professional roles in the building and construction industry. Picture by Ansovina Chai.

CONTRARY to earlier expectations that the government will embark on an austerity drive, given the need to exercise strict fiscal discipline and reduce its debt and liabilities, which have exceeded RM1 trillion, the budget turned out to be still an expansionary programme.

On that note, MIDF Research chief economist Kamaruddin Mohd Nor considers Budget 2019 an “encouraging fiscal plan”, considering the financial challenges of the government, that could be a boost to the economy despite the challenges facing the country.