Expansionary fiscal policy apt amid global tensions

Published on 12 Oct 2026 10:15:36 PM

The administration of Datuk Seri Anwar Ibrahim has opted against a sharper cut in the fiscal deficit that could constrain economic support amid global uncertainties, says Treasury secretary-general Tan Sri Johan Mahmood Merican.

Johan said some may question why debt levels could not be brought down faster, but a sharper reduction in the fiscal deficit would mean less fiscal support for economic activity.

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