Strike a right balance between fueling growth and curtailing debt, says OCBC economist

OCBC Bank chief economist Selena Ling

KUALA LUMPUR: Finance Minister Lim Guan Eng will have to strike a right balance between the cyclical need of juicing up growth at a time of heightened global uncertainties, and the structural necessity of curtailing government debt build-up, said an economist.

OCBC Bank chief economist Selena Ling said at the broadest level, by pencilling in a 3.2% fiscal deficit target as a proportion of GDP in 2020, he has managed to walk the middle way of some consolidation from 3.4% deficit expected this year and the original 2020 deficit target of 3.0% that he had first telegraphed last year. Any target of heavier consolidation been postponed, to a relatively vague promise of an average of 2.8% “over the medium term," she noted.”