[UPDATED] Budget 2023 to take into account nearly RM1.5 tril govt debt: PMO

KUALA LUMPUR – Budget 2023 will consider how the government’s debts and liabilities last year nearly exceeded RM1.5 trillion, or more than 80% of the nation’s gross domestic product (GDP). 

In a statement today, the Prime Minister’s Office said that the government’s debt service ratio is expected to exceed 15% of its revenue, while global economic growth is also projected to decline this year. 

“Budget 2023 will reflect the unity government’s responsibility towards prioritising growth, equitable distribution, and social justice. 

“The government will maintain an expansionary fiscal policy to support economic growth (while) implementing in phases measures to reduce deficits and ensure that the ratio of the nation’s debt and liabilities compared to our GDP is under control.”

The statement said that the Fiscal Policy Committee (FPC), which had recently met for its first meeting this year, noted that Budget 2023 will include measures to encourage investments in private sectors and reformation in public sectors. 

“The reformation of public sectors is aimed at reducing bureaucracy, increasing aid to conduct business, and improving government conduct,” it said. 

“The FPC stressed that the government will take a responsible approach towards drafting Budget 2023, even if the government has inherited high debt and faces an unstable global economy.” 

The committee is membered by prime minister and finance minister Datuk Seri Anwar Ibrahim, deputy prime ministers Datuk Seri Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof, as well as Economy Minister Rafizi Ramli and his ministry’s secretary-general Datuk Nor Azmie Diron. 

Also part of the committee are Chief Secretary to the Government Tan Sri Mohd Zuki Ali and Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus. – The Vibes, February 3, 2023