PARLIAMENT The government will ensure the Gross Domestic Product (GDP) deficit is reduced to four percent this year, said Prime Minister Najib Abdul Razak.

    

He said the government would also trim the deficit further to three percent by 2015 without jeopardising the country's growth momentum.

"The GDP deficit was reduced to 4.5 percent last year from 6.7 percent in  2009.

    

"For the long-term, the government is committed towards achieving a balanced budget by 2020," said Najib, who is also finance minister, in a written reply to Lim Lip Eng (DAP-Segambut) in the Dewan Rakyat today.

    

Lim asked the finance minister to explain the measures and strategies taken by the government to attain sustainable growth and reduce the country's deficit and debts.

    

Najib said the establishment of the Fiscal Policy Committee, at the Budget 2014 Consultative Council meeting on June 18, was aimed at reducing fiscal deficit, strengthening public finances and ensuring the nation's long-term fiscal sustainability.

 

The prime minister said this was necessary to achieve the fiscal target of  reduced deficit and debts, over the years, until a balanced budget is attained in 2020.

                                

In the first quarter of the year, the GDP grew 4.1 percent.

    

"The growth was supported by stronger domestic demand prompted by a higher consumption expenditure of 6.1 percent and investment activities of 13.2 percent" he said.

Elaborating further, Najib said based on current indicators, the government was confident of a resilient economic growth of between five and six percent this year.

- Bernama