Budget deficit sustainable: KL

Budget deficit sustainable: KL

KUALA LUMPUR: Malaysia said on Thursday it was maintaining its budget deficit at sustainable levels and that it did not expect a surplus in the near term.

Mustapa Mohamed, minister in the prime minister's office, said the budget deficit was equal to 4.30 percent of Gross Domestic Product (GDP) in 2004 and would be lower this year.

"This year we think we can achieve about 3.8 percent ... and that's in the context of further strengthening of the government's financial position," he said.

"We are controlling the deficit but we are not pushing for a surplus budget in the near term. We've got to be realistic," said Mustapa, who is also executive director of the government's National Economic Action Council.

"What is certain is that this year, next year we are not going to have a surplus budget," he added. -- AFP