KUALA LUMPUR, March 30 — The Ministry of Finance has touted its fiscal transformation programme today, pointing at the 2017 fiscal deficit of 3 per cent of the gross domestic product (GDP).

It said the fiscal policy continues to support its steps to increase Malaysia’s economic resilience and competitiveness, in addition to ensuring society’s prosperity and delivering quality public service.

"The government remains committed to implementing fiscal consolidation steps towards achieving balanced budget by 2020.

"This has been proven with the consitent fiscal deficit reduction from 6.7 per cent of the GDP in 2009 to 3 per cent in 2017,” it said in a statement on the country’s fiscal position.

Malaysia’s revenue has also increased 3.8 per cent to RM220.4 billion, backed by better tax revenue from an increase in compliance.

It has also reduced its reliance on petroleum revenue to just 15.7 per cent last year compared to 41.3 per cent in 2009.

In comparison, expenditure has risen slightly by 4.1 per cent to RM262.6 billion, but has fallen as a percentage of the GDP from 20.5 per cent in 2016 to 19.4 per cent last year.

Government debt is now RM686.8 billion, or 50.8 per cent of GDP, and Putrajaya said it would fall to around 50 per cent by the end of this year.

On Wednesday, Bank Negara Malaysia had said that Malaysia’s fiscal policy in 2018 will continue to focus on strengthening the government’s fiscal position, while ensuring sustainable and more inclusive economic growth.

The central bank also expected the fiscal deficit to narrow further to 2.8 per cent of the GDP this year, supported by higher growth in revenue.