Tough to achieve balanced budget right now, says Guan Eng

The finance minister says this is due to the country's financial situation and its huge national debt.

Finance Minister Lim Guan Eng.

KUALA LUMPUR: Finance Minister Lim Guan Eng has cautioned that achieving a balanced budget may be out of reach for the next few years due to the country’s financial limitations and the massive national debt.

“If the government could allocate more for development expenditure, it would definitely lead to more rapid economic growth and the people could feel the difference in terms of their quality of living.

“But in the current situation when the country is facing financial limitations, it is difficult to do so,” he said when winding up the debate on the Supply (Restructuring Expenditure Allocation) Bill 2018 at the Dewan Negara here yesterday.

Earlier, Senator Chandra Mohan S Thambirajah in his debate proposed that the government introduce a balanced budget and set aside more allocations for development.

On another matter, Lim said an increase or restriction of allocations would only affect ministries or agencies which had been restructured or changed.

“So when we say there will be restrictions or an increase of allocations, that is specifically for certain ministries. If their agencies are removed, of course the allocation will be restricted, but if they have to take in new agencies, the allocation will be increased.

“Overall, the budget is still the same as what was approved, but of course it does not take into account the off-budget transactions of the previous government,” he said.

The bill, which involves a budget of RM6.22 billion, was tabled following the restructuring of several ministries after the 14th general election.

It was later passed for the third reading. - FMT