THE government’s debt and liabilities stood at RM1.09 trillion as at the end of last year, says the Special Parliamentary Select Committee on the Budget.
Its chairman Datuk Seri Mustapa Mohamed said the committee had convened to determine the actual debt and liabilities of the Federal Government which would have an impact on the annual budget.
He said the latest finding of the government’s debt and liabilities was in line with the accrual accounting released by the International Monetary Fund.
In the report, which was tabled in the Dewan Rakyat, the RM1.09 trillion debt and liabilities consist of RM741bil of Federal Government debt, RM132.7bil of government-guaranteed loans, RM32.2bil of 1Malaysia Development Bhd (1MDB) principal debt and RM184.9bil of other liabilities.
Mustapa also revealed that the government had loaned almost RM9bil to 1MDB, which could instead have been used to fund infrastructure and development projects.
The committee recommended that the government’s debt and liabilities be tabled in detail regularly so that Parliament could monitor the payback performance and actual debt.
It also recommended the monitoring of debt to the ratio of the gross domestic product (GDP), government deficit ratio to GDP and the service payment compared to government revenues.