KUALA LUMPUR: Federal liabilities registered an increase of 3.8 per cent in 2023, the Auditor General's Report revealed.
Auditor General Datuk Wan Suraya Wan Mohd Radhi said the ratio of federal liabilities to gross domestic product (GDP) increased to 81.8 per cent, from 78 per cent in 2022.
"Meanwhile, the ratio of federal debt to GDP in 2023 stands at 64.3 per cent, also an increase from 60.2 per cent recorded in 2022.
"The statutory debt ratio to GDP also increased to 62.1 per cent in 2023, compared to 57.5 per cent in 2022," she said in the report.
Wan Suraya added that the National Audit Department, however, acknowledged efforts implemented by the government to ensure prudent management of federal debt, particularly through fiscal reforms with the passing of the Public Finance and Fiscal Responsibility Act 2023.
She said among efforts included in the Act to achieve fiscal objectives by 2030 were a fiscal balance of no more than -3 per cent of the GDP, a debt level not exceeding 60 per cent of GDP and financial guarantees limited to 25 per cent of GDP.
"The government has also taken steps to rationalise and consolidate the deficit gradually, with a projected fiscal deficit of 4.3 per cent of GDP in 2024."
In 2022, the federal liabilities increased by RM94.1 billion, which is 7.2 per cent more compared to what was recorded in 2021.
The LKAN 3/2024 Series 3 was tabled in Dewan Rakyat today with the consent of His Majesty Sultan Ibrahim, King of Malaysia.
This LKAN focuses on two issues; the performance report on the implementation of development projects under the 3rd Rolling Plan of the 12th Malaysia Plan (12MP) up to Dec 31 last year and the key audit area, concerning material and significant matters that impact the financial performance of the federal government in 2023.
The LKAN 2023 Series 1 was tabled in Dewan Rakyat on March 6, while Series 2 on July 4.
The public can view it at https://www.audit.gov.my from today at 10am.