Govt to spend on devt, keep debt manageable, says Deputy Finance Minister

by **hlk** Thu 06 Sep 2012, 18:58

KUALA LUMPUR: The government will have to continue spending on
development while at the same time keeping national debt at a
manageable level, says Deputy Finance Minister Datuk Donald Lim Siang Chai.
He
said on Thursday a significant development phase was taking place
currently involving several billion ringgit worth of projects such as
the Mass Rapid Transit (MRT) line.
As at December 2011, the ratio of national debt to the gross domestic product (GDP) reached 51.8%.
"Of course the debt figure is quite high but we have to spend money on infrastructure, healthcare and so on.
"We
want to cut down the figure, which in most developed nations is 100%
while in the United States it is 200%," he told reporters after
delivering a keynote address at the "Forum on Private Retirement Scheme
in Malaysia."
The forum was organised by the Malaysian Financial Planning Council and Financial Planning Association of Malaysia.
Lim
said the government would work hard not to exceed the debt ceiling of
55% of the country's GDP which was increased from 45% in July 2009.
Several global rating agencies, including Standard & Poor's and Fitch Ratings, recently raised concerns about the strains on the country's credit profile.
Lim
also said the country's dependence on the oil and gas (O&G) sector
would eventually be lower going forward as the government had beefed up
efforts to broaden its revenue base.
Lim said currently, the
O&G sector supplies about 35% of government revenue, followed by
the commodity sector (palm oil and rubber), manufacturing, retail
market and tourism.
"The dependence level in the 1990s was as
high as 50% and we have come down now with the expected increase in
contribution from the services sector given the efforts put in place to
boost the industry," he explained. - Bernama
On the Goods and
Sales Tax (GST) Bill, Lim said the second reading will be tabled in
Parliament as soon as the feedback from the business community is
received.
"Currently, we are holding an awareness campaign and more people are acknowledging it," he said. - Bernama