He said the fiscal deficit has been declining, from 6.4% of the gross domestic product in 2021 to 5.5% in 2022 and 5% in 2023.

This downward trend is projected to reach 4.3% in 2024, while the government is targeting a drop to 3.8% next year.

“It seems we are on the right track, as we project a drop to below 3.8% next year. God willing, we will be able to manage it better,” Amir said during the question-and-answer session in the Dewan Negara today.

Amir was responding to a supplementary question from senator Hussin Ismail, who asked about the national debt.

The minister said that in line with the reduced deficit, Putrajaya’s new debt had decreased from RM99.4 billion in 2022 to RM92.6 billion in 2023.

It is estimated to fall further to RM84.7 billion in 2024, with a target of around RM80 billion by 2025.

The government aims to reduce the deficit in accordance with the Public Finance and Fiscal Responsibility Act 2023, which has set a target fiscal deficit of 3% between 2026 and 2028.