Malaysian Budget Aids Poor as Subsidy Cut to Contain Deficit
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Prime Minister Najib Razak cut income taxes and extended handouts for the poor while pledging to reduce Malaysia’s fiscal deficit in the 2013 budget as the next general election nears. The ringgit gained.
The government plans to spend 251.6 billion ringgit ($82 billion) in 2013, Najib, who is also finance minister, said yesterday. Gross domestic product may expand 4.5 percent to 5.5 percent next year after rising as much as 5 percent in 2012, with the budget deficit forecast to narrow to 4 percent of GDP from 4.5 percent, he said.