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Friday, November 1, 2013

Budget 2014 shows strong fiscal consolidation intent: StanChart

Posted on 25 October 2013 - 08:24pm
Last updated on 25 October 2013 - 08:48pm

PETALING JAYA (Oct 25, 2013): Standard Chartered Bank (StanChart) regional research head Edward Lee (pix) said that the government has performed commendably at delivering a budget "that was not an easy one to deliver".

"While stronger commitments to subsidy rationalisation could have been made, the earlier decision to raise fuel prices in September already indicates that the government will be looking to make further adjustments. Some areas may need a closer look, such as the budgeted fall in development expenditure," he said in a statement today.

Lee added that Prime Minister Datuk Seri Najib Abdul Razak delivered a budget of strong fiscal consolidation intent.

The government maintained its fiscal consolidation stance, targeting to decrease overall fiscal deficit to 3.5% of gross domestic product (GDP). The absolute budget balance is targeted to decrease to RM37.1 billion from RM39.2 billion in 2013.

"The decision to implement GST is positive. Initial concerns that the GST implementation may not be pushed through proved unfounded," Lee said.

The cut in corporate tax rate will be positive for growth.

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