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KUALA LUMPUR: The Auditor General has expressed concern that most of all the new loans taken by the government are being used to pay off debts and not for development projects.
Datuk Nik Azman Nik Abdul Majid (Photo) It said that of the total of RM138,559bil for new loans, 59.9% or RM82,723bil was used to pay the past due debts.
“This means that only 29.7% or RM41,151 billion was allocated for development spending.
“What we recommend is that the amount is ideally used for development projects to stimulate the economy.
“This would be more effective so that we can earn income through taxes,” he said at a press conference in Parliament’s press room on Thursday (November 5).
Also present were several members of the Public Accounts Committee (PAC) such as its president Wong Kah Woh, his deputy Datuk Seri Azizah Dun, Datuk Seri Ahmad Maslan and Nurul Izzah Anwar, among others.
Nik Azman said the country was forecast to need to repay RM10bil annually just for debts in 2034.
He said that Malaysia currently pays around RM2bil a year.
“But in 2034, it would cost around RM10bil a year, so we need to be prepared and make sure that there are good value for money activities and economic projects that can help us pay back commitments,” he said.
Earlier, Wong said that the federal government debt in 2019 had risen to RM792.997bil compared to RM741.048bil in 2018.
He said that debt to Gross Domestic Product (GDP) stood at 52.5% compared to 51.2% in 2018.
The total debt and liabilities of the federal government, on the other hand, stood at 1.08 trillion ringgit.
“The Auditor General informed the PAC and some other issues were pointed out.
“Among them was that if the government wants to channel funds to government-linked companies for loans, then it must be recorded as a ‘claimable loan or advance,'” Wong said.
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