KUALA LUMPUR: The government is steadfast in achieving its gradual fiscal consolidation target by reducing national debt, while continuing to invest in improving the quality of life for all Malaysians.

Prime Minister Datuk Seri Anwar Ibrahim said the MADANI government has inherited a debt of RM1.5 trillion, with the annual fiscal deficit reduced to 5.0 per cent of Gross Domestic Product (GDP) in 2023, down from 5.6 per cent in 2022.

“The annual fiscal deficit is gradually declining, (along with) borrowings, which have gone to RM93 billion in 2023, and (with a target of) RM86 billion this year. While this is quite substantial, it is not enough,” he told CNBC in an interview.

Anwar emphasised that while the government has set targets for reducing the fiscal deficit and national debt, it will continue to invest in areas such as education, public health, and infrastructure to enhance the quality of life for Malaysians.

The national debt currently stands at 64 per cent of GDP, with the government aiming to reduce this figure to at least 60 per cent in stages.

Anwar previously noted that the fiscal deficit has been lowered to 5.0 per cent of GDP in 2023 from 5.6 per cent in 2022, with a projection of further reduction to 4.3 per cent this year.