Govt steadfast to reduce borrowings, fiscal deficit, declares Anwar

The government is steadfast in achieving its gradual fiscal consolidation target by reducing national debt, said Prime Minister Anwar Ibrahim.

Anwar, who is also the finance minister, said this is while continuing to invest in improving the quality of life for all Malaysians.

He said his Madani government has inherited a debt of RM1.5 trillion, with the annual fiscal deficit reduced to 5.0 percent of gross domestic product (GDP) in 2023, down from 5.6 percent in 2022.

“The annual fiscal deficit is gradually declining, (along with) borrowings, which have gone to RM93 billion in 2023, and (with a target of) RM86 billion this year. While this is quite substantial (reduction), it is not enough,” he told CNBC in an interview.

Anwar emphasised that while his government has set targets for reducing the fiscal deficit and national debt, it will continue to invest in areas such as education, public health, and infrastructure to enhance the quality of life for Malaysians.

The national debt currently stands at 64 percent of GDP, with the government aiming to reduce this figure to at least 60 percent in stages.

Anwar previously noted that the fiscal deficit has been projected to be further reduced to 4.3 percent this year.

- Bernama

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