Asia Bizz: Malaysia’s Budget For 2011 Eyes Smaller Deficit And More Spendings
Malaysia’s national budget for the year 2011, shows the there will be less deficit this time and more spending for the country. Even though the budget has decreased by 5.4% compared to last year, the government has said that the spending have rather increased. The total deficit has reduced by what it had been forecast in the year 2010 to be 5.6%.
There is direct increase in the operating expenditure of the country and a visible increase worth 7% or 162.8 billion ringgit. Lower development spending at 9% worth 48.5 billion ringgit. And in addition to all this the total increase in spending is worth 5.8 billion ringgit.
To tackle the increased spendings, the government expects there would be a revenue worth 3.7 billion ringgit coming in, which is higher than the 2.2 billion ringgit forecast, and would be earned from the cuts of the subsidy bills and salaries of the government employees. Growth rate in the year 2010 was 7% which was called out to be very stable and it has been forecast that it will be a moderate 5-6% in the year 2011.