Fiscal consolidation and prudent management of government finances has delivered over RM20bil in savings over a two-year period, says Lim Hui Ying.
The Deputy Finance Minister said this reflects efforts to consistently reduce the government’s deficit since 2022.
ALSO READ: Govt has reduced new debt, fiscal deficit continues to decline, says PM
“The deficit rate of 6.4% in 2021 was lowered to 4.11% in 2024,” she said.
“The lower deficit meant the government’s new borrowings were reduced from RM99.4bil in 2022 to RM92.6bil in 2023 and RM76.8bil last year,” added Lim.
She said on Wednesday that this represents savings of more than RM20bil for the government in two years.
Lim said this when wrapping up her ministerial replies during the debate on the Auditor‑General’s Report in the Dewan Rakyat, and added that prudent management of borrowings allows spending to focus on strategic development.
ALSO READ: Fiscal goals on track
These include infrastructure, health, education and social protection.
On government debt, Lim said it stood at RM1.3tril as of June this year.
She said this remains below the permitted statutory limit and defended the Inland Revenue Board’s actions to track and search premises of the wealthy suspected of tax evasion.
“I clarify that LHDN enforcement is based on tax laws without regard to a taxpayer’s status,” she said.
For delinquent taxpayers, Lim said civil action is taken to recover unpaid taxes.
She said LHDN can also impose overseas travel restrictions against them.
Lim said LHDN reduced its accounts receivable to RM6.47bil as of August 31 this year.
She said the government will continue efforts to collect and manage receivables administratively or through legal action and added that LHDN wrote off RM337.14mil in receivables last year.
This was due to taxpayer deaths, bankruptcies or company wind‑ups.
