THE federal government’s debt as of end-June 2014 stood at RM568.9 billion or 52.8 per cent of Gross Domestic Product (GDP), said Datuk Seri Najib Tun Razak.
The Prime Minister said of the total, 97.1 per cent or RM552.7 billion comprised domestic debt with the remaining RM16.2 billion or 2.9 per cent consisting of offshore loans.
Najib, who is also Finace Minister, said the government’s debt of below 55 per cent of GDP would make Malaysia a moderately indebted nation.
In his written reply to Teresa Kok Suh Sim (DAP-Seputeh) at the Dewan Rakyat sitting here yesterday, Najib said the federal government’s debt last year was RM547.6 billion or 54.7 per cent of GDP, while in 2012 it was RM501.6 billion or 53.3 per cent of GDP.
“The federal government’s debt in 2010 was RM407.1 billion or 51.1 per cent of GDP and in 2011 it was RM456.1 billion or 51.5 per cent of GDP,” he said.
Najib said the government has to date repaid all debts and debt service costs promptly and in an orderly fashion as a result of prudent debt management, with loans made only to finance development expenditure and after taking into account the ability to repay.
Debt service costs, which refer to the interest paid on loans, are a repayment obligation that needs to be given priority, and are expected to remain manageable at 10.3 per cent of revenue, well below the 15 per cent set down in fiscal management regulations, he added. — Bernama