Not Ready to tighten Fiscal Belt
The recently announced 2022 Budget comes as Malaysia emerges from the ravages of Covid-19. The government has decided to spend on wage subsidies, aid for stricken small- and medium-scale enterprises (SMEs), and tax breaks for businesses. Expenditure for social safety nets tears at the seams of public finances. Ultra-low interest rates and the increase in the debt ceiling to 65 percent of the gross domestic product have made extra public sector spending possible.
Thus, according to Professor Datuk Dr. John Antony Xavier, the Vice-Chancellor & Chief Executive of AIMST University, the latest budget is expansionary. It signals that Malaysia is not yet ready to tighten its fiscal belt. Read more regarding this in an article titled ‘Not ready to tighten fiscal belt,’ featured in the columnist section of NST on 1 November 2021 by