5 days ago
Anwar Says Govt Steadily Lowering Fiscal Deficit
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The government is reducing the fiscal deficit gradually to prevent disruptions in funding for essential programmes such as education, healthcare and the Rahmah Cash Aid (STR), said Prime Minister Datuk Seri Anwar Ibrahim.
He told the Dewan Rakyat during Ministerial Question Time that the deficit stood at 5.5% of gross domestic product in 2022 before being brought down to 5% in 2023 and further reduced to 4.1% 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,' Anwar said.
He noted that new debt had been declining in recent years: RM100 billion in 2021, RM99 billion in 2022, RM92.6 billion in 2023 and RM76.8 billion in 2024.
Anwar added that the phased approach allows higher allocations for key sectors. 'Last year, STR and Rahmah Basic Aid (Sara) allocations rose to RM15 billion, and the Education Ministry received the highest increase to RM64 billion, while the Health Ministry received a RM45 billion rise.'
He said this policy had been positively received, reflected in improved confidence among both foreign and domestic investors.
