KUALA LUMPUR: The Finance Ministry has stressed that it had never used the Emergency Ordinance to increase spending beyond the statutory ceiling limit approved in Parliament last August.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz refuted claims that the government took loans of up to RM115.53 billion to "spend as it pleases" during the Emergency.
He said all government loans are based on the expenditure approved in Parliament during the tabling of the 2021 Budget.
"Government loans as of April 2021 is RM81.8 billion and as of May, is around RM99.3 billion. The government does not take loans outside the annual budget (off balance sheet), unlike the previous government.
"The federal debt increased more than 120 per cent between 2008 and 2017 while total government guarantees surged by over 240 per cent," he said in a video posted to Facebook on Wednesday (May 26).
He also refuted that there was lack of transparency in the government's spending post Emergency proclamation.
He said the funds raised by Petronas and Khazanah Nasional Bhd, as mentioned by former prime minister Datuk Seri Najib Razak who criticised the government's spending, are from their own loans.
"They borrow for their respective capital and cash flow needs. It is their debt, not the debt of the federal government," he added.
He also explained that the current government inherited legacy debts involving 1Malaysia Development Bhd (1MDB), SRC International and Suria Strategic Energy Resources (SSER) amounting to over RM40 billion.
Tengku Zafrul said RM15.5 billion of 1MDB and SRC's debts had been repaid by the government so far and there remains more than RM42.3 billion in debts, comprising both principal and interest.
"Imagine how many people could have benefited during this pandemic if this amount of nearly RM58 billion was available for use.
"I don't mean to bring it up, but the matter is very relevant to the issue of national debt and the government's fiscal ability to help the people," he said.