Putrajaya grappling with tight fiscal position, says economist

Ragananthini Vethasalam

The government is fiscally strained, as proven by its move to dip into the National Trust Fund and to raise the statutory debt limit, says economist Lee Heng Guie. – The Malaysian Insight pic by Najjua Zulkefli, May 6, 2021.

DIPPING into the National Trust Fund (KWAN) for funds to procure Covid-19 vaccines and raising the statutory debt limit goes to show that Putrajaya is grappling with a tight fiscal position, said economist Lee Heng Guie.

“Rightfully, we have limited fiscal space. The government has used the Covid-19 bill (Temporary Measures for Reducing the Impact of the Coronavirus Disease 2019) to allow them to raise the debt-to-GDP ratio to 60% to provide them the extra space in case they need more fiscal stimulus,” the Executive director of the Socio-Economic Research Centre told reporters at a media briefing today.

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