Kuala Lumpur sees need for broader deficit in Budget 2020

Malaysian government forced to ease cuts in spending in a bid to prop up the economy

The skyline of Kuala Lumpur, on Sept 11, 2019. Malaysia's Finance Ministry has been receiving feedback to take a "pragmatic" view of its fiscal balance.
The skyline of Kuala Lumpur, on Sept 11, 2019. Malaysia's Finance Ministry has been receiving feedback to take a "pragmatic" view of its fiscal balance.PHOTO: AFP

Malaysia is planning a larger deficit than earlier targeted for Budget 2020 in the face of global headwinds, slowing an ambitious plan to slash debt amid grumbles over a stalling economy.

Official and financial sources told The Straits Times that the Finance Ministry has been receiving feedback to take a "pragmatic" view of the fiscal balance ahead of the Oct 11 tabling of the Budget, amid expectations of continued low oil prices and deepening worries over an escalating United States-China trade war.

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A version of this article appeared in the print edition of The Straits Times on September 12, 2019, with the headline 'KL sees need for broader deficit in Budget 2020'. Print Edition | Subscribe