WHILE the government tries to protect the economy and livelihoods from the effects of the Covid-19-triggered movement control order, concerns about the country’s higher fiscal deficit and public debt have surfaced. Local economists are expecting an even higher deficit, ranging from 6.5% to 7.5%. Given the higher fiscal deficit, government debt is also expected to rise this year. Instead of worrying about a higher fiscal deficit, the discussion group’s participants thought that the government should go all out this year to save livelihoods, and in particular, to help the unemployed. For instance, the Finance Minister has said that a rebalancing approach will be taken to bring the fiscal deficit to a better position once economic conditions normalise in the future.

Source: The Star October 12, 2020 22:18 UTC