KUALA LUMPUR, Aug 12 ― The government’s debt and liability exposures are estimated to reach RM1.264 trillion by the end of this year, Deputy Finance Minister 1 Datuk Abdul Rahim Bakri said.
According to him, the amount took into account this year’s overall deficit which includes funding for the stimulus package and economic recovery plan.
“This position will be reviewed and refined during the 2021 Budget tabling,” he said when replying to a question by Alice Lau Kiong Yieng (PH-Lanang) during the Dewan Rakyat sitting today, regarding the current national debt and government liabilities as well as the total estimated national income this year.
The PH MP also asked on measures to revive the economy and efforts by the government to increase the national revenue post-Covid-19 pandemic period.
Based on the application of Standard Government Finance Statistics 1986, Abdul Rahim said the federal government debt stood at RM823.8 billion while the debt position at 53.6 per cent of Gross Domestic Product (GDP), based on the statutory limit.
However, the government according to him also bore the liability and exposure to financial commitments, including guarantees amounting to RM166.9 billion to implement infrastructure projects such as LRT, MRT and the Pan-Borneo Sarawak Highway projects.
The government said the deputy minister, is also exposed to the 1Malaysia Development Bhd (1MDB) debt amounting to RM32.6 billion as well as RM181.4 billion in other financial liabilities, comprising Public-Private Partnership projects, Private Financing Initiatives (PFI) and Pembinaan BLT Sdn Bhd.
“During the tabling of the 2020 Budget, the government has announced the federal government’s projected total revenue of RM244.5 billion for 2020, assuming the global crude oil price, Brent, at US$62 per barrel.
“However, the Covid-19 pandemic and volatility in commodity price have had a major impact on the federal government's financial position. Based on the current situation, revenue estimates are expected to decline due to lower GDP projections and the current low crude oil price of around US$41 per barrel,” he said.
Abdul Rahim said, due to impacts of Covid-19 and the movement control order on the economy, the government had taken proactive measures to implement stimulus packages and economic recovery.
Therefore, the government he said, is expected to record a fiscal deficit of 5.8 to 6.0 per cent to the GDP this year compared to the previous estimate of 3.2 per cent.
“Details of the revised federal government's revenue estimates for 2020 will be presented together with the estimated financial position of 2021 in the 2021 Budget scheduled to be tabled on November 6, 2020, taking into account the current economic position,” he said. ― Bernama
