IPOH, June 16 — The federal government aims to decrease Malaysia’s fiscal deficit by 0.5 per cent next year, in an attempt to achieve a balanced national budget by 2020.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the government was targeting to reduce the nation’s fiscal deficit from this year’s figure of 3.5 per cent to 3.0 per cent in 2015.

“In six years, we are hoping to achieve a balanced budget without being in debt to any party. After that, we hope we can achieve a budget surplus,” Husni told reporters after launching the Barisan Nasional (BN) Tambun constituency’s mobile service centre at Tanjung Rambutan here yesterday.

“The government will focus on eliminating unnecessary expenditure in the 2015 Budget. We must spend productively so we can continue to achieve the high economic growth levels we enjoyed recently,” he said.

Husni said the government was well on its way to achieving this year’s economic growth target of between 5 and 5.5 per cent, especially after it was reported Malaysia’s economy had grown by 6.2 per cent in the first quarter of the fiscal year.

To maintain this growth, Husni said the government was targeting a gradual deficit decrease instead of a larger reduction.

He explained a drastic reduction of the deficit would curtail the government’s management and development budgets, adding this could hurt the economy in the long-term.

“Some question why do we not immediately eliminate the deficit, and the answer is simple — there must be a balance between reducing the deficit and maintaining economic growth.

“If we suddenly reduce the deficit, the sudden budgetary decrease will arrest economic growth. The knock-on effect from this will be a lack of business and job opportunities, which will increase unemployment.

“If this happens, the spending capability of the public will decrease and the economy will grow weaker. To prevent this scenario, any major deficit cuts need to be carried out gradually,” he said.

Husni also said the government would receive feedback from the grassroots on the tabling of the 2015 Budget, which is the last budget under the 10th Malaysia Plan.

He said it was imperative to listen to the differing views of the public, as it would give the government a better base of information to work on.

“Different parties have different issues to address. For instance, quality education could mean better access roads to school in rural areas, while it means something else to an urban school.

“We will take as much information on board as possible depending on how suitable the ideas are,” said Husni.

Members of the public who wish to contribute ideas for the 2015 Budget can submit their proposals via email to pro@treasury.gov.my before the end of next month.