Putrajaya unveils measures in revised budget to make good revenue shortfall

Kuala Lumpur

MALAYSIA has based its revised budget on the assumption that oil prices will be at US$30 to US$35 a barrel, but remains committed to meeting its fiscal deficit target of 3.1 per cent of its gross domestic product (GDP), even as it plans to offset a forecast revenue shortfall of RM9 billion (S$3 billion) by prioritising projects and optimising expenditure.

With oil prices now hovering at US$31 a barrel - compared to Putrajaya's assumption of US$48 last October, when the 2016 budget was tabled - Prime Minister Najib Razak said the government must be proactive in addressing the budgetary imbalance.