Budget cut if oil prices drop further, gov’t warns
The government will be forced to review the 2016 budget if Brent crude oil prices drop below US$48 per barrel next year, Finance Minister II Ahmad Husni Hanadzlah cautioned.
However, on the flip side, the government will be able to spare more funds for the people if crude oil prices climb next year, he said.
"If it goes lower than US$48 per barrel, we will have to review the budget again because we cannot go beyond a 3.2 per cent deficit and we cannot go higher than debt-to-GDP (gross domestic product) ratio," he was quoted as saying by Bernama .
At RM265.224 billion, Budget 2016 is an austerity budget, down from RM267 billion in 2015.
Ahmad Husni was speaking to reporters after launching the Malaysian Institute of Accountants' (MIA) International Accountants Conference 2015 in Kuala Lumpur today.
Also present were MIA President Mohammad Faiz Azmi and Auditor-General Ambrin Buang.
Ahmad Husni said the government needed to review the 2016 Budget should Brent crude oil go lower than the assumed US$48 per barrel to protect the economy and the public.
"We have to protect our economy to ensure that we achieve a sustainable growth and based on this, next year we can achieve a GDP of four to five per cent," he added.
High-income goals intact
Ahmad Husni said the government would ensure that the country achieved a high-income economy by focusing on productivity, involving the education and training sector.
"We also have to look at the needs of being affected by the high cost of living," he added.
Themed "Today's Synergy, Tomorrow's Reality", the two-day conference will end tomorrow .
It attracted the participation of close to 2,800 local and international delegates from commerce and industry, public sectors, public practices and academicians.
- Bernama
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