Govt likely to meet its fiscal target this year, says MIDF Research

Govt likely to meet its fiscal target this year, says MIDF Research
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KUALA LUMPUR (April 29): The government is likely to meet its fiscal target this year on the probability of higher average crude oil prices, according to MIDF Research.

In an economic report today, the research house said Brent reached as high as US$47 (about RM183) per barrel on intraday trading yesterday and averaged US$37 per barrel for the first quarter of 2016.

It said that as of April 28, oil price averaged at US$42 per barrel.

"This was higher than (the) optimistic scenario projected in the recalibrated Budget 2016 of US$35 per barrel, giving rise to better probability for oil price to average higher than projected for the year.

"We view this as a positive development of which the government is likely to meet its fiscal target this year despite moderating overall economic growth projection," it said.