KUALA LUMPUR, January 26- The 50 percent toll reduction from the normal toll rate in conjunction with the Chinese New Year celebration is a wise decision in managing the country's fiscal deficit.

Universiti Kebangsaan Malaysia's Senior Lecturer in the Faculty of Economics, Associate Prof Dr Mustazar Mansur said the decision could stimulate economic activity in rural areas.

"With this discount, they will have a little extra income. They can plan in terms of spending food, travel and also maybe they will spend in their hometown. This to some extent can generate the economy in rural areas or in their village and also they will double in terms of economic activities and so on", he told RTM.

He added that giving this discount can also reduce traffic congestion, especially during peak hours.

On 24 January, the MADANI Government in a Cabinet Meeting agreed to give a 50 percent toll discount for two days from the normal toll rate, in conjunction with the Chinese New Year 2025 celebration which will be celebrated on 29 and 30 January.