KUALA LUMPUR: The federal government's debt growth trend is expected to continue to decrease, ending 2024 at around 7.5 per cent compared to 8.6 per cent in 2023 and 10.2 per cent in 2022, according to the Finance Ministry (MoF).
This decline reflects the government's commitment to ensure that the debt-to-gross domestic product (GDP) ratio is reduced and does not exceed 60 per cent, as stipulated in the Public Finance and Fiscal Responsibility Act 2023 (Act 850).
As of the end of June 2024, the federal government's debt stood at RM1.22 trillion.
"The federal government's gross borrowings amounting to RM112.5 billion for the period from January to June 2024 are lower compared to RM128 billion for the same period in 2023," it said in a statement published on the Parliament's website yesterday.
The ministry was responding to a question from Hassan Abdul Karim (PH-Pasir Gudang) regarding the government's steps to repay the national debt and strategies to reduce government debt in the coming years.
It informed that several control measures have been and will be implemented to reduce debt levels, including fiscal consolidation to ensure new borrowings are lower, broadening the revenue base, targeted diesel subsidies, and reassessing the implementation and financing of mega projects to ensure economic efficiency and sustainability.
– BERNAMA