Deputy finance minister Ahmad Maslan said the budget deficit is estimated at 5.8% of gross domestic product (GDP) for 2022, and its forecast for 2023 will be announced later.

Ahmad said the government will not be imposing new taxes that will burden the people. However, it is necessary to find alternative ways to increase income to ensure the economy continues to grow, he told reporters at the Parliament building today.

He said higher debts are being taken on to ensure that provisions for the development and economic well-being of the people can be met.

“We have to deal with a deficit budget when we were facing the pandemic over the last two years and it was difficult to find new income for the government.

“This is also one of the reasons we had to raise the statutory debt rate from 55% of GDP to 60%, and then 65%,” he said.

He said the government does not intend to increase the national debt, currently at 60% to 61% of GDP.

On the reintroduction of the goods and services tax (GST), Ahmad said this has not been brought up by the unity government.