PUTRAJAYA, Malaysia, Sept. 27 (Xinhua) -- Malaysia targets to narrow its budget deficit to 3 percent of the gross domestic product (GDP) by 2015 as it expects economy to grow by 4.5 percent to 5.5 percent next year from about 5 percent this year, a senior government official said Thursday.
The official, who declined to be named, said ahead of the tabling of national budget on Friday that the 2013 budget would be "mildly expansionary but fiscally responsible."
Last year's budget deficit was 4.8 percent of the GDP and is expected to remain above 4 percent this year.
Prime minister Najib Razak had said that domestic consumption would give an impetus to growth in Malaysia amid slowing growth in China and volatile environment in the U.S. and Europe.
Friday's budget would be Najib's last before the election due mid 2013.
The government is committed to revamp the tax structure towards a consumption based regime when the public is ready for it, the official said.
The budget would review of the subsidy system to reduce wastage and is said to include measures to strengthen the capital market, following the successful listing of two of the world's three biggest Initial Public Offerings in the country this year.
Malaysia's economy has been growing healthily at an average of 5.8 percent during Najib's administration.
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