Can Malaysia hit a lower budget deficit target in 2014?

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Malaysia Anticipates Achieving Lower Budget Deficit Target in 2014

Malaysia is projected to achieve its target of a reduced budget deficit in 2014. This outlook is supported by expectations of stronger economic growth and enhancements in tax collection. The government has maintained its forecast for a progressive decrease in the budget gap, moving from 4.5 per cent in 2012 to 4.0 per cent in 2013, and further down to 3.5 per cent for 2014.
Economic Growth and Fiscal Consolidation

Economic growth in Malaysia is anticipated to strengthen, with the Gross Domestic Product (GDP) forecast to expand to between 5.0 and 5.5 per cent in 2014. This represents an increase from the 4.5 to 5.0 per cent growth projected for 2013. The government's strategy involves a firm yet measured approach to fiscal consolidation, aimed at ensuring that economic momentum is not compromised.
Debt Levels and Current Account

The government expects to remain within its self-imposed debt ceiling of 55 per cent of GDP in the upcoming year, with a projected ratio of 54.7 per cent. Concurrently, the current account surplus is forecast to experience a further decline, estimated at RM23.9 billion in 2014, down from RM26.6 billion in 2013. This contrasts with a significantly larger surplus of RM57.3 billion recorded in 2012.
Trade Performance and Inflation Outlook

Exports are predicted to see a modest increase of 2.5 per cent in 2014, a recovery following a 0.4 per cent contraction in the preceding year. Inflation is expected to remain within manageable levels, projected to be between 2.0 and 3.0 per cent for the year. Despite these projections, expenditure on subsidies, including fuel, is slated to rise slightly to RM39.3 billion in 2014, compared to RM37.7 billion in 2013.

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Can Malaysia hit a lower budget deficit target in 2014?

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