KUALA LUMPUR: The subsidy rationalisation carried out recently was a long-term measure to reduce government liability, said Deputy Finance Minister Datuk Ahmad Maslan.
It was not due to economic crisis, he said when replying to a supplementary question from Datuk Abd Aziz Sheikh Fadzir (BN-Kulim Bandar Baharu).
To the original question from Abd Aziz, Ahmad said, “The government will ensure the fiscal deficit level drops to four per cent of GDP (gross domestic product) this year to boost the economy.
He said the government resolved to ensure that the debt level would not exceed 55 per cent of the GDP while expenditure would not exceed revenue.
“The government is confident that the efforts and other initiatives that will be announced in Budget 2014 will continue to drive economic growth and meet the target of achieving developed country status,” he said.
Ahmad said the country registered 4.3 per cent economic growth in second quarter of this year with strong GDP growth of 4.2 per cent in the first six months of this year.
Thus, the GDP growth target is achievable due to strong economic fundamentals despite uncertainties in global economy, he added. — Bernama