Govt Committed To Reducing National Debt, Fiscal Deficit -- Pm Anwar

KUALA LUMPUR, July 25 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim has refuted claims that the monetary, fiscal and budget policies have not been successful in achieving the government’s promise of debt and fiscal deficit reduction.   

He stressed that the government is committed to lowering the national debt, which is currently being done.

 Anwar said there has been some hue and cry in the past few weeks suggesting that the government was not telling the truth and has reneged on its promise.

“We have been attacked on social media, but the information given is false,” he said in a video posted on the X platform today.

Anwar stated that some of the claims are unfounded and irresponsible political swipes.

On Monday, the Prime Minister said the government targets to reduce annual borrowing to RM86 billion this year from RM93 billion in 2023 and RM100 billion in 2022.

He noted that the present government had inherited debts topping RM1 trillion, and the figure even reached RM1.5 trillion.

“In 2021 and 2022, external and internal debts amounted to RM100 billion respectively.

“When we took over the government in 2023, we were told the situation was untenable with the accumulated ing and rising debt.

“Hence we reduced it to RM93 billion from RM100 billion. In 2024, the debt was further reduced to RM86 billion,” he added.

Anwar explained that at the same time, the government could not simply eliminate all debts as this would affect, among others, projects meant to help the people as well as obligations to repay old debts.

“The debt level is high and now stands at 64 per cent of Gross Domestic Product (GDP). Our target is to reduce it in stages to at least 60 per cent,” he said.

He said the national fiscal deficit has been lowered to 5.0 per cent of GDP in 2023 from 5.6 per cent in 2022, and this year it is projected to be reduced to 4.3 per cent.

“I present these figures, which are being defended as being truthful. The Finance Ministry, along with the Department of Statistics Malaysia, release such data from time to time,” he added.

-- BERNAMA