KUALA LUMPUR: The MADANI government is gradually reducing the fiscal deficit in phases to lessen the national debt burden, said Prime Minister Datuk Seri Anwar Ibrahim.
He said that if the deficit were to be reduced suddenly, there is a risk that it would hinder additional allocations for educational activities, the Sumbangan Tunai Rahmah (STR) assistance and health.
Anwar said the fiscal deficit was recorded at 5.5 per cent of gross domestic product (GDP) in 2022. This was gradually reduced to five per cent in 2023 and further reduced to 4.1 per cent in 2024.
“Our target is to reduce the deficit gradually in phases. As long as the deficit is not reduced, the debt amount will increase.
“That is why, from the debt perspective, I said in 2021 that the new debt amounted to RM100 billion; in 2022, RM99 billion and in 2023, the new debt amount fell to RM92.6 billion. In 2024, it will further be decreased to RM76.8 billion,” he said during the ministerial question time in the Dewan Rakyat today.
Anwar said last year, STR and SARA rose to RM15 billion, and the Education Ministry received the highest increase of up to RM64 billion, while the Health Ministry received a RM45 billion rise.
He said the policy implemented has been viewed positively following a rise in foreign and domestic investor confidence. – Bernama
