2008 Budget Analysis

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Date: September 2007 Issue: Budget 2008
BUDGET 2008 Analysis

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The budget 2008 is seen as a conservative budget given that the present administration’s main focus was to contain the budget deficit. The MoF aims to reduce the budget deficit from -3.2% of GDP to -3.1% of GDP in 2008. This also reflective that Malaysia, being an open trade economy has always been responsive to international country ratings. Our Federal debt is slightly higher at RM 267.5 b (or, 42.3% of GDP) raised mainly through the issuance of government securities. It is understandable that the government continues to be cautious about its borrowings...........