PETALING JAYA: The Federal liability position in 2023 showed an increase, with the Federal Liability to GDP ratio rising to 81.8% compared to 78.0% in 2022, says the Auditor-General's Report.
The Federal Debt-to-GDP Ratio also climbed from 60.2% in 2022 to 64.3% in 2023.
"The Federal Government must pay attention to the increasing trend of Federal Liabilities, consisting of Federal Debt and Financial Liabilities, which rose by RM92.038bil (6.6%) to RM1.492 trillion from RM1.400 trillion in 2022," said Auditor-General Datuk Wan Suraya Wan Mohd Radzi.
The report also noted that the Statutory Debt-to-GDP ratio stood at 62.1% in 2023, up from 57.5% in the previous year.
To address these concerns, the Auditor-General's Office acknowledged the initiatives undertaken by the government, including the approval of the Public Finance and Fiscal Responsibility Bill, 2023 (Act 850) in Parliament.
"Act 850 outlines medium-term commitments to achieve fiscal objectives by 2030, including a fiscal balance target of less than 3% of GDP and a debt level below 60% of GDP," she explained.
The report also highlighted the government's efforts to rationalise and consolidate the fiscal deficit to achieve a target of 4.3% of GDP by 2024.
"The Federal Government is advised to continue efforts to increase revenue from various sources, improve governance in public expenditure management, and strengthen the financial position of the Federal Government," the report recommended.
The Auditor-General's Report underscored the need for the government to prioritise prudent debt management and fiscal responsibility to ensure the long-term sustainability of the country's finances.
