We support government’s resolve to be measured in its spending – Deloitte

Deloitte has expressed support for the government’s decision to cut spending, stating that it could restore investor confidence and enhance macroeconomic stability.

However, the firm noted that fiscal tightening and aggressive expenditure cuts may slow economic growth, leading to a projected decline in real GDP growth in 2025.

Deloitte emphasized the need to reduce budget and primary balance deficits, which have averaged 7.5% from 2021-2024, to prevent increasing debt burdens. The firm welcomed the proposed tax reforms, including VAT adjustments and realignment of import duties, as beneficial to businesses.

It also called for more details on the 24-Hour Economy policy and infrastructure projects. Deloitte urged the government to strengthen fiscal responsibility measures and address energy sector debts to ensure sustainable economic growth.