KUALA LUMPUR — Aug. 6, 2018: The Malaysian government last year had revenue of RM220.40 billion, which was a 3.8 per cent increase from 2016.
Operating and development expenditure totalled RM262.58 billion, an increase of RM10.41 billion from 2016.
“The federal government had a RM40.32 billion deficit, with a deficit-Gross Domestic Product (GDP) ratio of three per cent,” said the Auditor-General’s 2017 report.
The government also incurred foreign and domestic loans of RM129.24 billion to finance development expenditure and loan repayments. Federal debts stood at RM686.83 billion or a debt-GDP ratio of 50.8 per cent.
The direct repayment of loans from the consolidated loans account is outside of the government’s budget mechanism, which means that the repayment of the principal debt was not allocated for under the Federal government’s annual budget tabled in Parliament and not accounted for in the annual operating expenses for the current year.
As the repayment of loans was not budgeted in the allocation for operations, the AG suggests for the new estimated amount of loans for the repayment of the principal debt to be tabled in Parliament during the presentation of the budget for operations and development.
Additionally, the federal government should ensure that its financial statements were complete and up-to-date by undertaking periodical reviews at all levels. — Bernama