Latest news with #deficit reduction
Malay Mail
4 hours ago
- Business
- Malay Mail
Anwar: Govt manages to cut new debt by RM22b over two years, slams critics for ‘deceiving the people'
PUTRAJAYA, July 21 — Prime Minister Datuk Seri Anwar Ibrahim said the government has succeeded in reducing the annual debt to RM77 billion in 2024 from RM99 billion in 2022. This thus fulfils the commitment of more prudent fiscal management, and only the interest payments on old debts have not yet been reduced, he said. 'The new debt that the government has incurred (was) RM99 billion in 2022, dropping to RM93 billion in 2023 and in 2024 the total is RM77 billion... that is less. 'They say the total amount (of debt) is more, added with the old debt and the interest that we have to pay, but I said the government promised to reduce new debt, we have fulfilled that. 'But what is being spread around... we are increasing (the debt), so it is as if we are deceiving the people. If you look at these figures, who is deceiving?' he asked when speaking at the Prime Minister's Department monthly assembly here today. Anwar, who is also the Finance Minister, said annual new debt had been successfully reduced in line with the reduction in the deficit, while giving the commitment that the government would reduce the fiscal deficit in stages and responsibly without affecting national development. He said the government had reduced the country's fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent for this year. He explained that the government has chosen a 'gradual' approach so that deficit reduction does not sacrifice development needs and market confidence. Anwar said the move was in line with economic principles that emphasise financial discipline in the economic management of an entity, including the country. 'We took over in 2022, the fiscal deficit at that time was 5.5 per cent. What is a deficit? It means that spending exceeds national income, which means we are in debt. 'We manage the national economy like a household economy. If the income is RM5,000 but the expenditure is RM7,000, that is a deficit. So now we are reducing the expenditure to RM6,500, RM6,000, RM5,500. If it drops suddenly, then (development) cannot proceed,' he said. The Prime Minister also praised the work of the civil service team who carried out their responsibilities so that Malaysia jumped 11 places in the IMD World Competitiveness Ranking 2025, to 23rd compared to 2024 (34th), driven by improved economic performance and administrative efficiency. In June, the Ministry of Investment, Trade and Industry (MITI) announced that Malaysia had jumped 11 places in the World Competitiveness Ranking (WCR) 2025 to 23rd place, which is the country's best achievement since 2020, thus reflecting the progressive momentum in the country's economic recovery and reform agenda. MITI said the rise of the country is on track to be among the 12 most competitive economies before 2033, as targeted by the MADANI Economy Framework. Anwar added that the International Monetary Fund in its Article IV consultation for 2025 had praised Malaysia's commitment in implementing fiscal reforms including the Public Finance and Fiscal Responsibility Act (FRA). 'What does that mean? It means the Finance Minister has handed over some of his powers to parliament to assess if the target has been met,' he said. — Bernama
CTV News
5 days ago
- Business
- CTV News
French PM's plan to scrap two holidays stirs outcry, and memories of a toppled predecessor
PARIS - French Prime Minister Francois Bayrou wants to scrap two public holidays to put France's finances back on track. It's a brave move: The last French leader to try something similar soon found himself out of a job. Bayrou, a long-time debt hawk who is fighting for his political survival, made the headline-grabbing proposal on Tuesday, when he outlined a series of deficit-reduction measures worth 43.8 billion euros (US$50.88 billion) next year aimed at lowering France's debt. 'The entire nation must work more - to produce, to increase overall national activity throughout the year, and to improve France's situation,' Bayrou said. 'That's why I propose the removal of two public holidays.' His idea is not without precedent. In 2003, just months after a heatwave that killed nearly 15,000 people, then-Prime Minister Jean-Pierre Raffarin announced a plan to scrap the Pentecost Monday holiday and replace it with a 'day of solidarity.' Pitched as a form of civic duty to finance aid for the elderly who had been disproportionably affected by the heatwave, employees would work for free while employers would also contribute. The measure, rolled out in 2005, was a disaster. Some offices and schools shut; others remained open. Some workers got paid; others didn't. Strikes and protests soon followed. 'It has become a social and political mess,' newspaper Le Monde wrote in an editorial at the time. Two weeks later, the day after voters rejected a referendum on the European Union constitution, Raffarin resigned. Bayrou's uncertain future Bayrou, who has survived eight attempts to topple him since taking office last December, is certain to face more no-confidence votes in a few months when budget talks gather momentum. His fate now rests largely in the hands of the far-right National Rally (RN), France's largest parliamentary party, which can topple him if its lawmakers team up with the left. 'If Francois Bayrou does not change his plans, we'll vote for a motion of no-confidence against him,' RN party chief Marine Le Pen said on Tuesday, joining leftist party chiefs who also signaled their willingness to unseat Bayrou. Jean-Daniel Levy, from pollster Harris Interactive, told Reuters that while most supported Bayrou's deficit-reduction efforts, 70% of respondents to their snap poll rejected the scrapping of two public holidays, and 61% rejected Bayrou's proposed welfare spending freeze. 'I think everyone agrees we need to make an effort — but there are efforts, and then there are efforts,' said Jean Claude Vie, 85, as he walked the streets of Paris. 'Is he making any effort himself?' he asked of Bayrou, saying the 74-year-old would 'be better off retiring than holding onto a job that could go to someone younger.' Ditching the Pentecost holiday was an easier sell in 2003, Levy said, as many French wanted to give back after the killer heatwave. Bayrou, however, has no such levers to pull. 'It's perceived as a double punishment,' Levy said. 'Working more without earning more, and losing moments of rest.' Speaking on TF1 about the public holidays, Labour Minister Astrid Panosyan-Bouvet said that in 'exchange' for the additional working days, a 'contribution' would be requested from businesses, without giving more details. Opposition senses an opportunity Jordan Bardella, Le Pen's young protege and the RN's possible candidate in the 2027 presidential vote, zeroed in on Bayrou's proposal to abolish holidays, calling it 'a direct attack on our history, our roots, and the France of workers.' Leaders on the left were equally displeased. Sophie Binet, who leads the CGT union, criticized the plan to scrap the May 8 holiday, which commemorates the end of World War Two, questioning the nixing of a day celebrating 'the victory over Nazism, just as the far right stands at the gates of power.' Not all were outraged. In an op-ed in Le Monde, economist Charles Wyplosz said Bayrou's 'budget proposal is courageous and, overall, rather well-conceived.' Scrapping two public holidays would increase revenues to the tune of 4 billion euros, he estimated. Despite being diluted by lawmakers in 2008, Raffarin's 'day of solidarity' endures, widely derided as a 'ghost holiday' that continues to cause confusion among workers and employers. Additional reporting Noemie Olive and Leigh Thomas; Editing by Ros Russell, Reuters
Khaleej Times
5 days ago
- Business
- Khaleej Times
French PM's plan to scrap two holidays stirs outcry
French Prime Minister Francois Bayrou wants to scrap two public holidays to put France's finances back on track. It's a brave move: The last French leader to try something similar soon found himself out of a job. Bayrou, a long-time debt hawk who is fighting for his political survival, made the headline-grabbing proposal on Tuesday, when he outlined a series of deficit-reduction measures worth 43.8 billion euros ($50.88 billion) next year aimed at lowering France's debt. "The entire nation must work more — to produce, to increase overall national activity throughout the year, and to improve France's situation," Bayrou said. "That's why I propose the removal of two public holidays." His idea is not without precedent. In 2003, just months after a heatwave that killed nearly 15,000 people, then-Prime Minister Jean-Pierre Raffarin announced a plan to scrap the Pentecost Monday holiday and replace it with a "day of solidarity." Pitched as a form of civic duty to finance aid for the elderly who had been disproportionably affected by the heatwave, employees would work for free while employers would also contribute. The measure, rolled out in 2005, was a disaster. Some offices and schools shut; others remained open. Some workers got paid; others didn't. Strikes and protests soon followed. "It has become a social and political mess," newspaper Le Monde wrote in an editorial at the time. Two weeks later, the day after voters rejected a referendum on the European Union constitution, Raffarin resigned. Bayrou, who has survived eight attempts to topple him since taking office last December, is certain to face more no-confidence votes in a few months when budget talks gather momentum. His fate now rests largely in the hands of the far-right National Rally (RN), France's largest parliamentary party, which can topple him if its lawmakers team up with the left. "If Francois Bayrou does not change his plans, we'll vote for a motion of no-confidence against him," RN party chief Marine Le Pen said on Tuesday, joining leftist party chiefs who also signalled their willingness to unseat Bayrou. Jean-Daniel Levy, from pollster Harris Interactive, told Reuters that while most supported Bayrou's deficit-reduction efforts, 70% of respondents to their snap poll rejected the scrapping of two public holidays, and 61% rejected Bayrou's proposed welfare spending freeze. "I think everyone agrees we need to make an effort — but there are efforts, and then there are efforts," said Jean Claude Vie, 85, as he walked the streets of Paris. "Is he making any effort himself?" he asked of Bayrou, saying the 74-year-old would "be better off retiring than holding onto a job that could go to someone younger." Ditching the Pentecost holiday was an easier sell in 2003, Levy said, as many French wanted to give back after the killer heatwave. Bayrou, however, has no such levers to pull. "It's perceived as a double punishment," Levy said. "Working more without earning more, and losing moments of rest." Speaking on TF1 about the public holidays, Labour Minister Astrid Panosyan-Bouvet said that in "exchange" for the additional working days, a "contribution" would be requested from businesses, without giving more details. Jordan Bardella, Le Pen's young protege and the RN's possible candidate in the 2027 presidential vote, zeroed in on Bayrou's proposal to abolish holidays, calling it "a direct attack on our history, our roots, and the France of workers." Leaders on the left were equally displeased. Sophie Binet, who leads the CGT union, criticised the plan to scrap the May 8 holiday, which commemorates the end of World War II, questioning the nixing of a day celebrating "the victory over Nazism, just as the far right stands at the gates of power." Not all were outraged. In an op-ed in Le Monde, economist Charles Wyplosz said Bayrou's "budget proposal is courageous and, overall, rather well-conceived." Scrapping two public holidays would increase revenues to the tune of 4 billion euros, he estimated. Despite being diluted by lawmakers in 2008, Raffarin's "day of solidarity" endures, widely derided as a "ghost holiday" that continues to cause confusion among workers and employers.
Yahoo
5 days ago
- Business
- Yahoo
France Proposes Axing Two Public Holidays to Tackle Deficit
(Bloomberg) -- French Prime Minister Francois Bayrou proposed scrapping two national holidays, part of a drastic effort to repair public finances that's set to unleash a parliamentary backlash in the fall. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say The premier put forward the plans as he unveiled an array of measures amounting to €43.8 billion ($50.9 billion) to pare back the largest deficit in the euro area. Other moves include a new tax on the highest earners, a freeze in pension and welfare payments at 2025 levels, and possible sales of the state's stakes in companies. Bayrou said the country is addicted to public spending and in 'mortal danger,' with debt increasing by €5,000 every second and interest costs on track to hit €100 billion per year in 2029 if nothing is done. 'This is the last stop before we hit the cliff and are crushed by debt,' he said in a speech in Paris. 'The entire nation must work harder to produce more and ensure that the country's overall activity is greater throughout the year.' The government aims to narrow the budget gap to 4.6% of economic output in 2026 from a forecast 5.4% this year, before bringing it within the European Union's limit of 3% by 2029. The sharp belt tightening Bayrou proposed represents a politically risky shift toward the kind of austerity policies undertaken by several other European countries, often during debt crises, but largely eschewed until now by successive French governments. However, Bayrou may not be able to push through his plan. With no majority in parliament, the prime minister is in danger of being forced out in the fall through a no-confidence vote, the same fate that met his predecessor, Michel Barnier, in December. The centrist premier is also under pressure from investors who have dumped French bonds over the last year amid deteriorating public finances and political uncertainty, driving up borrowing costs relative to peers. On Tuesday, the yield premium on French 10-year bonds over German equivalents remained steady at around 70 basis points, close to the widest in three weeks. Public Holidays France has 11 public holidays a year, more than half of which are linked to Christian observance. That's the same as the number of federal holidays in the US in most years and compares with eight days off a year in England and Wales. But as French schools and businesses sometimes shut on days between public holidays and weekends, the calendar can have an outsized impact on economic activity, particularly in May. Canceling two days would give a boost of 'several billion euros' to public finances, according to the prime minister. 'The problem is that French production is insufficient compared with our competitors,' Finance Minister Eric Lombard said on France 2 TV. 'The French on average work 100 hours less than the Germans.' France wouldn't be the first European country to cut public holidays. Portugal suspended four of them in 2013 in an effort to boost economic output as part of a European bailout following a debt crisis. The government in Lisbon reversed that decision in 2016. Bayrou said he would propose abolishing Easter Monday, which often lands in April, and May 8, which marks the victory of the allies over Nazi Germany. Jordan Bardella, president of the National Rally, immediately rejected the move, calling it a 'direct attack on our history, our roots and working people' in a post on X. Marine Le Pen, who leads the far-right party in the National Assembly, said in a separate post that her group would propose to censure the government unless Bayrou revises his entire fiscal and economic plan. Still, the premier could still survive a no-confidence vote if, like in February for the 2025 budget, he can convince some moderate left-wing lawmakers to abstain. Boris Vallaud, the leader of the Socialist Party in the National Assembly, said on X that the budget plans are 'brutal and unacceptable.' The Socialists will present their own proposals in the fall, the party said in a statement, adding that 'censure is the only prospect' for Bayrou's proposal. France's lower house of parliament isn't scheduled to come back into session until late September. For his part, Bayrou said the urgency of reining in France's deficit trumps any calculations about whether he could survive a no-confidence motion. 'This government knows perfectly well it is at the mercy of opposition' groups, he said, adding that there were even some doubts among parties that support him. 'But the government has the duty, the desire and the wish to overturn obstacles and give our country a reason to live and believe.' --With assistance from James Hirai, Claudia Cohen and Phil Serafino. (Updates with comment from Socialist Party in 18th paragraph.) Forget DOGE. Musk Is Suddenly All In on AI How Hims Became the King of Knockoff Weight-Loss Drugs Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks Is Engineering a Turnaround With Warm Vibes and Cold Foams The New Third Rail in Silicon Valley: Investing in Chinese AI ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
France Proposes Axing Two Public Holidays to Tackle Deficit
(Bloomberg) -- French Prime Minister Francois Bayrou proposed scrapping two national holidays, part of a drastic effort to repair public finances that's set to unleash a parliamentary backlash in the fall. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say The premier put forward the plans as he unveiled an array of measures amounting to €43.8 billion ($50.9 billion) to pare back the largest deficit in the euro area. Other moves include a new tax on the highest earners, a freeze in pension and welfare payments at 2025 levels, and possible sales of the state's stakes in companies. Bayrou said the country is addicted to public spending and in 'mortal danger,' with debt increasing by €5,000 every second and interest costs on track to hit €100 billion per year in 2029 if nothing is done. 'This is the last stop before we hit the cliff and are crushed by debt,' he said in a speech in Paris. 'The entire nation must work harder to produce more and ensure that the country's overall activity is greater throughout the year.' The government aims to narrow the budget gap to 4.6% of economic output in 2026 from a forecast 5.4% this year, before bringing it within the European Union's limit of 3% by 2029. The sharp belt tightening Bayrou proposed represents a politically risky shift toward the kind of austerity policies undertaken by several other European countries, often during debt crises, but largely eschewed until now by successive French governments. However, Bayrou may not be able to push through his plan. With no majority in parliament, the prime minister is in danger of being forced out in the fall through a no-confidence vote, the same fate that met his predecessor, Michel Barnier, in December. The centrist premier is also under pressure from investors who have dumped French bonds over the last year amid deteriorating public finances and political uncertainty, driving up borrowing costs relative to peers. On Tuesday, the yield premium on French 10-year bonds over German equivalents remained steady at around 70 basis points, close to the widest in three weeks. Public Holidays France has 11 public holidays a year, more than half of which are linked to Christian observance. That's the same as the number of federal holidays in the US in most years and compares with eight days off a year in England and Wales. But as French schools and businesses sometimes shut on days between public holidays and weekends, the calendar can have an outsized impact on economic activity, particularly in May. Canceling two days would give a boost of 'several billion euros' to public finances, according to the prime minister. 'The problem is that French production is insufficient compared with our competitors,' Finance Minister Eric Lombard said on France 2 TV. 'The French on average work 100 hours less than the Germans.' France wouldn't be the first European country to cut public holidays. Portugal suspended four of them in 2013 in an effort to boost economic output as part of a European bailout following a debt crisis. The government in Lisbon reversed that decision in 2016. Bayrou said he would propose abolishing Easter Monday, which often lands in April, and May 8, which marks the victory of the allies over Nazi Germany. Jordan Bardella, president of the National Rally, immediately rejected the move, calling it a 'direct attack on our history, our roots and working people' in a post on X. Marine Le Pen, who leads the far-right party in the National Assembly, said in a separate post that her group would propose to censure the government unless Bayrou revises his entire fiscal and economic plan. Still, the premier could still survive a no-confidence vote if, like in February for the 2025 budget, he can convince some moderate left-wing lawmakers to abstain. Boris Vallaud, the leader of the Socialist Party in the National Assembly, said on X that the budget plans are 'brutal and unacceptable.' The Socialists will present their own proposals in the fall, the party said in a statement, adding that 'censure is the only prospect' for Bayrou's proposal. France's lower house of parliament isn't scheduled to come back into session until late September. For his part, Bayrou said the urgency of reining in France's deficit trumps any calculations about whether he could survive a no-confidence motion. 'This government knows perfectly well it is at the mercy of opposition' groups, he said, adding that there were even some doubts among parties that support him. 'But the government has the duty, the desire and the wish to overturn obstacles and give our country a reason to live and believe.' --With assistance from James Hirai, Claudia Cohen and Phil Serafino. (Updates with comment from Socialist Party in 18th paragraph.) Forget DOGE. Musk Is Suddenly All In on AI How Hims Became the King of Knockoff Weight-Loss Drugs Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks Is Engineering a Turnaround With Warm Vibes and Cold Foams The New Third Rail in Silicon Valley: Investing in Chinese AI ©2025 Bloomberg L.P.
