Fiscal injection rises to RM35 billion, says finance minister

Finance Minister Tengku Zafrul Aziz says the stimulus package amounts to 18% of GDP. (Bernama pic)

KUALA LUMPUR: The government’s direct fiscal injection to stimulate the economy has increased to RM35 billion with the announcement of the RM10 billion package for SMEs.

Finance Minister Tengku Zafrul Aziz said the injection would be funded through government funds and domestic borrowings.

“The country’s budget deficit was previously forecast at about 4% following the (RM250 billion) Prihatin Rakyat economic stimulus package.

“With the additional RM10 billion under the package for SMEs, the total package now amounts to RM260 billion, which will raise the budget deficit by 0.7% to 4.7%,” he said in an interview on TV3 today.

Overall, the Prihatin package represents 18% of the country’s gross domestic product.

He said more than two million new submissions had been received since the cash aid scheme was opened for application on April 1.