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KUALA LUMPUR: Public sector debt through June 2020 increased to RM1.2 trillion or 85.5% of gross domestic product (GDP) due to higher federal government fiscal deficit to fund Covid-19 pandemic stimulus measures, said today the ministry of finance.
Last year, it was RM1.136 trillion or 75.2% of GDP.
The largest component of public sector debt is federal government debt of RM 854.1 billion or 69.4% of the total, followed by non-financial public enterprise (NFPC) liabilities, which represent the 24.4% and the statutory bodies 6.2%.
Debt guaranteed by statutory bodies rose to RM75.7 billion, primarily attributed to additional sukuk issues by the Public Sector Housing Finance Board to fund housing loans for public sector employees, it said. the ministry in the Federal Government’s Fiscal Outlook and Revenue Estimates report for 2021 published today.
Furthermore, the debt of the NFPCs also increased to RM300.4 billion. This includes the provision of additional financing facilities to finance capital expenditures in connection with the development of the Mass Rapid Transit project, as well as investments in the oil and gas sector.
Public sector debt represents consolidated debts of the federal government, state governments, NFPCs, and sovereign guaranteed debt of statutory bodies.
