Husni: Lower deficit under Budget 2013, on target for 3% deficit in 2015

KUALA LUMPUR: The government is expected to announce a lower budget deficit number under Budget 2013, in line with its target to achieve three per cent deficit by 2015.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said every year the government always looks at the deficit when preparing the budget, adding it will always be maintained under five per cent.

"For Budget 2013, we will reduce our deficit as compared to the one this year, which we have estimated at about 4.7 per cent.

"The Cabinet has approved the draft budget, so we are now preparing to define it and prepare the budget speech," he told reporters after delivering a keynote address at the CFO Thought Leadership Roundtable here on Tuesday.

In his speech, Husni said: "Just as we should not see the gross domestic product growth number in a simplistic and isolated context, we need to review our fiscal deficit within a number of perspectives.

"To get economic growth, one has to spend money. This money has to come from somewhere our tax revenue, our income from Petronas and elsewhere.

"Like anyone else, we also need to incur debt. Debt in itself is not a bad thing, as long as it is used efficiently and wisely."

Themed "Augmenting Growth While Balancing Risks and Reward", the one-day conference is aimed at sharing of experiences through solo presentations and interactive roundtable discussions.

BERNAMA