Federal government performed better with surplus of RM2.028 billion

Federal government performed better financially in 2023 with a surplus of RM2.028 billion while deficit was reduced by RM8.595 billion.

It led to GDP deficit ratio down by 0.5 percent to 5.0 percent, revealed the Auditor General’s Report on the Federal Government’s Financial Statements for 2023.

“The deficit balance of the Development Fund amounted to RM10.217 billion, showing a reduction of RM1.734 billion (14.5 per cent) compared to RM11.951 billion in 2022.

“However, the federal government needs to pay attention to the trend of increasing federal liabilities, which consist of federal debt and financial liabilities, rising by RM92.038 billion (6.6 per cent) to RM1.492 trillion compared to RM1.400 trillion in 2022,” stated the report.

the government’s guarantee commitments to 13 companies increased by 1.5 per cent year-on-year to RM3.288 billion in 2023.

Dividends received by the federal government showed a significant decline of RM9.756 billion.

The federal liabilities-to-GDP ratio increasing to 81.8 per cent compared to 78.0 per cent in 2022.

Federal debt-to-GDP ratio in 2023 was at 64.3 per cent, also up from 60.2 per cent in 2022.

Statutory debt-to-GDP ratio was 62.1 per cent in 2023 compared to 57.5 per cent in 2022

“The National Audit Department (JAN) noted the initiatives implemented by the government to ensure prudent management of federal debt, especially through fiscal reforms with the approval of the Public Finance and Fiscal Responsibility Act 2023 [Act 850] in Parliament on Oct 11, 2023.

“The federal government has also taken steps to rationalise and consolidate the deficit gradually, with a projected fiscal deficit of 4.3 per cent of GDP in 2024,” it stated.

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