KUALA LUMPUR: New debt for the country has gradually reduced despite continuing polemic over the national debt, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said that this reduction is important because as long as a fiscal deficit exists, the total amount of debt will continue to rise.
"The fiscal deficit indeed poses a challenge. The first Madani government is trying to reduce the fiscal deficit and new debt even though it remains a never-ending political polemic. Why do we need to reduce the deficit? If we don't, the debt will balloon.
"We brought it down from 5.6% (of gross domestic product) to 5% (in 2023), followed by 4% and now we are projecting 3.8% (for 2025) and a continued reduction for the following year," he said when tabling the 13th Malaysia Plan (13MP) in the Dewan Negara on Monday (Aug 25).
Anwar said the increase in overall debt was due to the interest burden from legacy debts, not from new borrowings and the records clearly show that new debt had decreased.
He also said the government remains committed to reducing the fiscal deficit gradually with the target of reaching 3% of gross domestic product (GDP) in the next five years, and bringing down the debt level to no more than 60% of GDP. – Bernama
