Focus on reducing fiscal deficit aimed at boosting investor confidence, says PM

PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has stated that the government’s focus on reducing the fiscal deficit in Budget 2024 is intended to enhance investor confidence and stimulate economic growth. Anwar, who is also the Finance Minister, mentioned that if the national deficit were to increase further, investors would lose faith in the government’s leadership. He made these remarks during the monthly Finance Ministry assembly that took place on Tuesday (Oct 17).

Anwar alluded to the philosophy of economist and philosopher Adam Smith, emphasizing that the best way to manage the economy is by treating it like managing the finances of a family. He pointed out that accumulating debt that the children cannot afford to repay indicates a failure in management. However, if the debt can be handled later and is capable of promoting growth, it would be justifiable.

The Prime Minister’s statement reflects the government’s commitment to addressing the fiscal deficit in order to attract potential investors. By reducing the deficit, the government aims to instill confidence in its leadership and assure investors of a responsible and efficient administration. This move is essential for sustaining economic growth in the country and attracting foreign investments that can contribute to the overall development of the nation’s economy.

Investor confidence plays a crucial role in determining the success of any economy, and the government’s efforts to reduce the fiscal deficit demonstrate its dedication to fostering a favorable investment climate. Ensuring the stability of the nation’s finances is vital in attracting both local and international investors, who seek assurances that their investments will yield promising returns.

As the Finance Minister, Anwar recognizes the significance of implementing prudent fiscal policies. By curbing expenditure and managing debt responsibly, the government can create favorable conditions for economic growth. Anwar’s reference to Adam Smith’s economic philosophy reinforces the importance of striking a balance between debt management and fostering growth.

Budget 2024 is expected to outline specific measures aimed at reducing the fiscal deficit and promoting economic recovery. These measures may include strategies for revenue generation, expenditure reduction in non-essential areas, and improvements in the allocation of resources to priority sectors. The government’s determination to address the fiscal deficit demonstrates its commitment to long-term economic sustainability and financial stability.

Overall, the government’s focus on reducing the fiscal deficit in Budget 2024 serves the purpose of instilling investor confidence and driving economic growth. Anwar’s remarks during the Finance Ministry assembly emphasize the importance of responsible debt management and highlight the government’s dedication to creating a conducive investment climate. Through prudent fiscal policies and a balanced approach to debt management, the government aims to attract investments that will contribute to the growth and development of the nation’s economy.

– Bernama