They said there is also a risk of the government going overboard with its borrowings now that there is no parliamentary oversight.

Barjoyai Bardai of Universiti Tun Abdul Razak said the increase in government debt through the issuance of bonds, such as the sustainability sukuk announced last month, is expected and acceptable, since the finance minister announced that the government planned to borrow RM60 billion to cover the 2021 budget deficit.

“We expected the government to borrow, and they are doing the borrowing,” he said.

However, he questioned the sale of government-owned assets.

“We’ve been selling a lot of valuable assets, like (stocks in) IHH Healthcare Bhd, and now we’re going to sell Telekom. To me these are precious jewels, and should not be sold just to cover the deficit,” he told FMT.

He added that in the long term, the government should not be allowed to have access to these institutions as a means to fund expenditure.

Subang MP Wong Chen, who is on the parliamentary special select committee for finance and economy, said raising the national debt through the issuance of bonds would mean the use of more tax revenue and Petronas dividends to service interest rates.

“We are already paying about RM35 billion a year in interest alone, and the principal debt amount is growing larger every year.”

He said the funds would be better used for education and health spending, while an increase in the debt would dim financial prospects for future generations.

However, he also expected that there would be more bonds issued in the near future, judging from the government’s track record.

“This government has not shown financial prudence or accountability,” he added.

Meanwhile, speaking on the requirement for parliamentary oversight, he said the sukuk issuance had needed Parliament’s approval, as it is issued by the government directly.

But with parliament suspended, he said the public can now only rely on the Auditor-General to ensure transparency and accountability.

Another economist, Yeah Kim Leng, said with higher debt, the government’s direct debt-to-GDP ratio is now hovering close to its maximum limit of 60%.

He added that in the event the government breaches the limit, they would need to seek parliamentary approval to raise the debt ceiling.

The increase in government debts may also mean that the government would need to raise taxes and set aside more revenue for debt servicing, instead of development spending.

“Besides saddling future generations with a high debt burden, a highly indebted government will also have less flexibility to cope with future crises,” he added.

Meanwhile, he called for full transparency in matters related to government borrowing and the sale of assets.

“The government should also ensure that operating and development spending is carried out efficiently and prudently with no or minimal wastage or leakage.”

Much has been debated about Putrajaya’s recent financial moves, with certain parties questioning the government’s unfettered power to carry out decisions without parliamentary oversight.

Last month, an ordinance was gazetted allowing the prime minister, chief ministers or menteris besar to tap into consolidated funds without the approval of Parliament or state assemblies during the emergency period.

Former prime minister Najib Razak had claimed in a Facebook post that since mid-April, the government has raised a total of RM38.7 billion through asset sales and bonds, on top of other government securities.

He listed the following financial moves over the last three weeks:

April 15: Khazanah Nasional Bhd completed a placement of 53.8 million shares in Telekom Malaysia Bhd at RM5.80 per share, raising gross proceeds of RM312 million.

April 22: The government priced the world’s first sovereign US dollar sustainability sukuk, via the issuance of US$800 million 10-year trust certificates and US$500 million 30-year trust certificates.

April 23: Petronas raised US$3 billion from a bond offering to refinance debt and for other corporate purposes.

April 27: Government taking RM5 billion from the National Trust Fund (KWAN).

May 6: Khazanah raised another RM4.1billion from sukuk issuances.