In a parliamentary reply, the ministry said the fiscal deficit is projected to continue to decrease to 4.3% in 2024 as announced in Budget 2024, involving new loans amounting to RM85.4 billion.

“In this regard, the government will continue gradual fiscal consolidation in stages to ensure medium and long-term financial sustainability,” it said in response to a question from Ronald Kiandee (PN-Beluran), who wanted to know the latest details about the government’s debt and new loans, as well as the fiscal deficit rate to date.

The total government debt as of last December was RM1.17 trillion or 64.3% of GDP, while debt grew by 8.6% in 2023, lower than the growth of 10.2% in 2022.

The government debt consists of domestic debt amounting to RM1.14 trillion, or 97.5%, and offshore loans amounting to RM29.8 billion, or 2.5%.

“The government’s debt and liability exposure position at the end of December 2023 stood at RM1.53 trillion or 84% of GDP.

“This amount covers government debt amounting to RM1.17 trillion, guarantee commitments amounting to RM226.1 billion and other liabilities amounting to RM133.7 billion,” said the ministry.

In terms of statutory limits, debt instruments consisting of Malaysian government securities, Malaysian government investment issues, and Malaysian Islamic treasury bills registered 62.1% of GDP, still below the statutory limit of 65%.

Meanwhile, offshore loans stood at RM29.9 billion and Malaysian treasury bills amounted to RM5.5 billion, both of which are below the set statutory limits of RM35 billion and RM10 billion respectively.

“The government remains committed to reducing the level of debt as per the target set under the Public Finance and Fiscal Responsibility Act 2023, which is an overall level of debt below 60% of GDP, which needs to be achieved in the medium-term,” it said.