KUALA KANGSAR — June 10, 2016: The federal government debt is manageable and far smaller than that of developed countries like the United States and Japan.
According to Prime Minister Datuk Seri Najib Razak, the sovereign debt of the US, Japan and Singapore is far bigger
when compared with their per capita income.
On Tuesday, Treasury Secretary-General Tan Sri Dr. Mohd. Irwan Serigar Abdullah said that as at the end of last year, the government’s debt totalled RM630.5 billion or 54.5 per cent of gross domestic product.
Najib, who is also finance minister, asked the people not to be swayed by claims that the country was riddled with huge debts.
“Listen to and apply what the World Bank and the International Monetary Fund have reported. They all say the country’s economy, under Barisan Nasional rule, has developed well,” said Najib when presenting RM500 each to smallholders and tappers here.
The government will pay out RM194 million this year to 388,111 smallholders and rubber tappers affected by low natural rubber prices.
He also said that because of prudent management, the government is able to provide the people various financial assistance despite the sluggish global growth.
Najib cited the example of the Goods and Services Tax which had proven to have benefitted the people, including the RM500 financial assistance for 1.6 million civil servants for Aidilfitri to be given on June 13.
“We were able to fulfill the request by the Congress of Unions of Employees in the Public and Civil Services to pay a special bonus for Hari Raya. If we did not collect the GST, how will the government make this payment?” he asked.
Najib also said the GST is not to burden the people but it is for the country’s good.
The GST of six per cent was implemented on April 1 last year to replaced the sales and services tax. — Bernama