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KUALA LUMPUR: Total government debt and liability exposures are estimated to be RM1,257 trillion, or 87.3% of gross domestic product (GDP), at the end of September.
Federal debt at the end of September amounted to RM 874.3 billion or 60.7% of GDP, said Deputy Finance Minister Mohd Shahar Abdullah.
“However, according to the legal limit calculations, the federal debt, comprising Malaysian government securities, Malaysian government investment issuance and Malaysian Islamic Treasury bills, is 56.6% of GDP, which is less than the recently established 60% limit, “he said. the Dewan Rakyat today.
He was responding to Amanah president Mohamad Sabu (PH-Kota Raja), who asked him about the current situation of government debt and the debt-to-GDP ratio.
“The government is committed to ensuring that the refinancing of its debts is implemented in an orderly manner as scheduled,” said Shahar.
In view of the prolonged Covid-19 pandemic, he said, the government will focus on economic recovery to safeguard the well-being of the people and support business activities.
Shahar said that after the economy recovers, the government would re-implement fiscal consolidation measures to ensure exposures to debt and financial liabilities remain well controlled and manageable.
The measures would include expanding the revenue base, strengthening tax administration and enforcement, and increasing spending efficiency to contain the federal deficit level.
“That will reduce the government’s dependence on loans and reduce exposures to debt and financial liabilities,” he said.
