Kita Prihatin to widen budget deficit by 0.7% of GDP

CGS-CIMB Research said it is maintaining its GDP forecast of -4.0 per cent in 2020 and its budget deficit forecast at 6.5 per cent of GDP.

KUALA LUMPUR: CGS-CIMB Research estimates the RM10 billion PRIHATIN Supplementary Initiative Package (KITA PRIHATIN) will increase the Ministry of Finance's last projected budget deficit by 0.7 per cent of gross domestic product (GDP).

The estimated budget deficit may be less if part of the expenditure falls under Budget 2021 or if the funds are reallocated from other budgeted expenses, it said in a research note today.