KUALA LUMPUR – There is no need to recalibrate the 2017Budget at the moment as the global oil prices are stable at between US$45 and US$50 per barrel, said the Ministry of Finance (MOF)
Its Head of Econometric, Fiscal and Economics Division, Dr V. Sivabalasingam, said the oil prices were stable at present.
“Last year, the budget was recalibrated due to the decline in oil prices to US$30 per barrel,” he told reporters after the Post-Budget 2017 Dialogue organised by the Asian Strategy and Leadership Institute here today.
Sivabalasingam said the country’s economy was currently doing well and the assumption for oil prices was positive.
“However, we do not know what is going to happen next year,” he said.
Meanwhile, Fellow of Economics at the Institute of Strategic and International Studies Malaysia, Firdaos Rosli, shared Sivabalasingam’s view.
He said there was no need to recalibrate the budget as the current oil price volatility would remain at a steady level.
“We should look at the daily movements rather than the monthly trend,” he said, adding that the 2017 Budget was drafted based on average price of US$45 per barrel.
Yesterday, Taxand Malaysia Chairman, Dr Veerinderjeet Singh, said there would be a need for the government to recalibrate the budget next year as the economic scenario may not be that attractive then.
Veerinderjeet said the recalibrated 2016 Budget, which was announced in January this year, was largely due to the steep fall in global oil price.
“For 2017, if the oil price remains stable it would be fine but if the economic climate does not improve and tax collection keeps dropping and the revenue from the goods and services tax keeps declining, I think the government needs to do a budget recalibration either in the first or second quarter,” he said. – BERNAMA