KUALA LUMPUR, Jul 25 — Prime Minister Datuk Seri Anwar Ibrahim has today refuted allegations that his administration is staying silent on the country's debt.

In a video posted on his official Facebook page, he reiterated that his government had inherited massive debts amounting to between RM1 billion and RM1.5 trillion after it assumed power in 2022.

"It is our commitment to reduce the debt and this is what we're doing," the Prime Minister said.

He said in 2021 and in 2022 the nation's debt reached RM 100 billion respectively, but it was reduced to RM93 billion in 2023, and it has further declined to RM86 billion this year.

"So why can't all debts be cancelled? Then it will affect the projects meant to help people, new schools or universities, and development, including our obligations to pay old debts," he said.

The prime minister also elaborated that the country’s debt-to-gross domestic product (GDP) ratio currently stands at 64 per cent.

"Our target is to gradually decrease to at least 60 per cent," he said.

In the three-minute video, he also said that the previous governments had allowed government deficit to reach 6 per cent of the GDP.

However, last year, the deficit ratio was at 5 per cent.

"This is what we inherited. Similar to debts, if we reduce it drastically, it would affect our current projects.

"That's why we are reducing it gradually," he elaborated.

He said that the rumours that his government broke their promise to reduce the country's debt were unfounded and part of an irresponsible political culture.

He highlighted that the Ministry of Finance and the Department of Statistics Malaysia regularly publishes relevant data on the matter.

Earlier this week, Anwar had said the government is taking prudent steps to ensure its spending is only used when necessary as funds for development or to settle existing debts.

He stressed the importance of plugging potential financial leakages and for taxpayers in fulfilling their obligations.