A budget deficit may not necessarily a weakness, if used effectively as a strategic tool for economic growth.

That is the view of economist Dr Valmiki Arjoon, ahead of the National Budget, when he spoke with 103.1FM News.

With a projected fiscal 2025 deficit of $9.6 billion, Dr Arjoon explained why he thinks the deficit may even drop.

Dr Arjoon says the key lies in prioritizing high-impact capital expenditure.

Dr Arjoon also remains hopeful to say that no further taxation is expected.

Dr Arjoon said expenditure on key capital projects could stimulate private sector activity, improve the business climate, and ultimately drive future revenues, particularly in the non-energy sector, helping to narrow the fiscal gap in the years ahead.