THE government has balanced fiscal discipline and generating strong economic growth in Budget 2019, said Economic Affairs Minister Azmin Ali.

He said the initiatives and efforts introduced in the budget showed the government’s concerns for the well-being of the people and Bottom 40% (B40), as well as Middle 40 (M40) income group, even at a time when the fiscal position was tight.

“With these efforts, it is hoped we can help these household income groups face economic challenges.

“Following this, it can generate economic activities and increase the country’s revenue,” he said at the Parliament lobby after the tabling of the budget by Finance Minister Lim Guan Eng today.

Lim said the government had restructured the budget approach through zero-based budgeting, that is, a system based on zero budget to improve effectiveness, greater efficiency and higher cost savings.

Apart from that, Lim also said the fiscal deficit in 2018 was expected to rise to 3.7% due to the previous government’s expenditure commitments, which were unbudgeted, such as the interest for servicing 1Malaysia Development Bhd debts amounting to RM1 billion.

“For the next three years, the Pakatan Harapan government is committed to maintaining fiscal consolidation measures to reduce the deficit to 3.4% of gross domestic product in 2019, 3% in 2020 and 2.8% in 2021. 

“Over the medium term, the deficit is expected to be reduced further to the region of 2%,” Lim said. – November 2, 2018.