KUALA LUMPUR (Sept 28): Budget 2020 is expected to continue to focus on fiscal discipline while stimulating the economy, which likely means an increase in development expenditure, say economists.

In two weeks, the government will be unveiling Budget 2020 to Malaysia. This will be the second budget unveiled by the Pakatan Harapan government and has been deemed as an important one for the nation for many reasons.

Many are looking at Budget 2020 for a clear policy direction from the government for the economy, given that 2020 will be the last year of the 11th Malaysian Plan.

Besides that, the expectations of a global economic slowdown ahead coupled with the on-going trade dispute the US and China have also made the Budget 2020 one which will be closely watched by all stakeholders.

One thing is clear is that the revised fiscal deficit target of 3% for 2020 will not be met. More realistically, economists see the fiscal deficit to come in at 3.2% in 2020, down from 3.4% in 2019.

Many anticipate a higher allocation for development expenditure this round on the back of the weaker economic backdrop while experts have also called for the government to step up measures to help spur private investments.

How will the government navigate around slowing economic growth, setting new policy direction while managing its coffers?

Find out in the latest issue of The Edge.

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