Malaysian fiscal responses to the current recession: a critical evaluation

Abstract

In formulating the 1983 budget, "... the government had two very important considerations to take into account: First, how long could we afford to be countercyclical without adversely affecting the viability of the Government's financial position, the balance of payments and price stability? Secondly, would our socio-economic aspirations as envisaged in the New Economic Policy be adversely affected by reversing our countercyclical policies? These were very critical considerations."