KUALA LUMPUR: The fiscal deficit is on track to be reduced to four per cent this year from 4.5 per cent last year, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

Ahmad Husni said there is a transparent, well-phased and well-calibrated timetable to narrow the fiscal deficit.

"We intend to stick to our targets. I do not foresee any change in circumstances which would require us to regress from our timetable of targets," he said in his speech during the annoucement of Kumpulan Wang Persaraan (Diperbadankan) financial results for year 2012.

He said the current account remains in surplus.
"We are proactive in our initiatives to ensure this position remains," he said.

Ahmad Husni said he is hopeful that in the next 24 months, the momentum of growth in the larger developing and developed economies would become sufficiently sustainable to support greater global economic expansion, forecast by the International Monetary Fund at four per cent and 4.3 per cent in 2014 and 2015, respectively.

"Against this backdrop, we can expect our domestic fundamentals to strenghten further," he said.

In the current year 2013, he said, the global economy is expected to remain uncertain, with uneven growth trends and volatile market movements.

"Nonetheless, strong pillars of domestic fundamentals support the Malaysian economy," he said. -- BERNAMA