Kita Prihatin to widen budget deficit by 0.7% of GDP

Prime Minister Tan Sri Muhyiddin Yassin has unveiled Kita Prihatin, comprising the RM7bil Bantuan Prihatin Nasional 2.0, RM2.4bil targeted wage subsidy programme and RM600mil Prihatin special grant.

KUALA LUMPUR: CGS-CIMB Research estimates the RM10bil Prihatin Supplementary Initiative Package (Kita Prihatin) will increase the Finance Ministry’s last projected budget deficit by 0.7% 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.