PETALING JAYA: A reduction in the national debt from various measures, including the fuel subsidy rationalisation, could see various effects on the economy in the longer term.
Prime Minister Datuk Seri Anwar Ibrahim said in late July that the country is aiming to reduce the annual borrowing to RM86bil this year as a short-term measure to boost its financial capacity and stability. “The government’s reduced borrowings are due to lower budget deficit levels in 2024, reflecting a gradual fiscal consolidation by the retargeting of subsidies and price controls; optimisation and rationalisation of expenditure; and some revenue enhancement measures,” he told StarBiz.
“There will definitely be some impact on certain segments of society such as those who do not qualify for targeted subsidies anymore, which results in them having to pay more for fuel, for example.