The government has revised the deficit target to 6 percent from 5.4 percent of gross domestic product (GDP) for 2021, having factored in continuing measures from 2020 economic stimulus packages, as well as the Permai and Pemerkasa packages launched in the first quarter of this year.

Consequently, the federal government’s statutory debt is also estimated to increase from 58 percent in 2020, to 58.5 percent by end-2021.

“This is still below the statutory limit of 60 percent, which was approved by Parliament in August 2020. The country's debt profile remains favourable with...