KUALA LUMPUR – The government’s total debts and liabilities are estimated to be RM1.257 trillion, or 87.3% of the Gross Domestic Product (GDP), as at the end of September, said Deputy Finance Minister II Mohd Shahar Abdullah.
He said federal debt for the same period amounted to RM874.3 billion, or 60.7% of GDP.
“However, based on statutory limit calculations, the federal debt, comprising Malaysian Government Securities, Malaysian Government Investment Issues and Malaysia Islamic Treasury Bills, comprised only 56.6% of GDP, which is less than the 60% limit set,” he said during the Dewan Rakyat sitting today.
Sahar was replying to a question posed by Mohamad Sabu (PH-Kota Raja) on the government’s current debt position and the debt-to-GDP ratio.
“The government is committed to ensuring the refinancing of its debts is implemented in an orderly manner according to schedule,” he said.
In view of the prolonged Covid-19 pandemic crisis, Sahar said, the government will focus on economic recovery, especially to safeguard people’s welfare and support business activities.
He said after the economy has recovered, the government will go back to implementing fiscal consolidation measures to ensure that the federal government’s debts and financial liabilities remain well-controlled and manageable.
He said the measures will include expanding the revenue base, strengthening tax administration and enforcement, and increasing spending efficiency to contain the federal deficit level.
“This will reduce the government’s dependence on borrowings, and curb the federal government’s debts and financial liabilities.” – Bernama, December 6, 2020
