KUALA LUMPUR: The government’s fiscal consolidation efforts have successfully saved RM20 billion in borrowings over two years according to Deputy Finance Minister Lim Hui Ying.
She stated that fiscal consolidation has consistently reduced the annual deficit from 6.4% in 2021 to 4.1% in 2024.
The deficit reduction translated into decreased borrowings from RM99.4 billion in 2022 to RM92.6 billion in 2023 and further to RM76.8 billion in 2024.
Lim explained these savings during her winding-up speech on the Auditor General’s Report 3/2025 for the Ministry of Finance in the Dewan Rakyat.
She emphasised that government borrowings remain prudent and strategically targeted toward development sectors like infrastructure, education, health and social protection.
These strategic investments stimulate long-term economic growth while improving citizen welfare according to the deputy minister.
The government operates within statutory borrowing limits with federal debt at RM1.3 trillion as of end-June 2025.
This debt level remains below the statutory ceiling despite ongoing fiscal challenges.
Lim confirmed the government will continue implementing measures to reduce both the deficit and new borrowings including liabilities.
The government also aims to decrease the country’s overall dependence on debt through sustained fiscal discipline.
Meanwhile Lim clarified that Inland Revenue Board enforcement actions follow tax law provisions regardless of taxpayer status.
Civil enforcement against delinquent taxpayers includes legal operations lawsuit filings judgments and travel restrictions.
These measures prevent taxpayers from leaving the country while ensuring tax compliance.
As of August 31 2025 RM6.47 billion has been recovered from outstanding tax receivables through payments and enforcement actions.
Write-offs totalling RM337.14 million in 2024 followed Treasury Circular and IRB guidelines strictly.
These write-offs applied only to cases where collection became impossible such as deceased or bankrupt taxpayers or wound-up companies. – Bernama
