CAMPAIGN TRAIL: Ahmad Husni having a light moment with the people during the programme. — Bernama photo
IPOH: The opposition should get their facts right before raising the question on government financial management particularly on debt-to-gross domestic product (GDP) ratio, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.
He also said the country has a fiscal prudence policy where the debt-to-GDP ratio must be kept below the 55 per cent threshold.
“We have the ability to repay the loans because we make projections in our budget forecast on payments that must be made,” Ahmad Husni told reporters at a community service programme here yesterday.
He pointed out that there was an increasing trend of debt-to-GDP ratio which saw the United States debt-to-GDP ratio rise to 106.5 per cent in 2012, the United Kingdom (90.3 per cent), Japan (237.9 per cent).
Singapore grew to 111.0 per cent in 2012 (105.2 per cent in 2011), Germany rose to 82.0 per cent in 2012 (80.5 per cent) and Malaysia also increrased to 53.7 per cent last year (51.8 per cent).
“These countries also have higher debt-to-GDP ratio. If, let’s say, the financial management is not right here, can you say other financial management methods are also not right?”, asked Ahmad Husni, who is also Barisan Nasional candidate for the Tambun parliamentary seat.
On the opposition’s promise to abolish toll, he said the government has to pay compensation amounting to RM6 billion, annually, to the highway concessionaire companies and it would cost more than RM100 billion if the government were to take over the highways.
“We always have to think whether the opposition’s manifesto is realistic or not, that is the issue,” Ahmad Husni said, adding that they have studied the opposition’s manifesto and advised the rakyat not to be deceived by it.
The study showed that their manifesto is not doable because the country’s fiscal deficit would increase to 11.5 per cent and increase the debt-to-GDP ratio to 62.1 per cent, he said.
“When the country’s financial position deteriorates, credit-rating agencies might downgrade our rating and this will have a systemic effect that causes economic shrinkage.
“That’s why we need prudent financing so that we can sustain the financial and economic growth of this country,” Ahmad Husni added. — Bernama