Govt Committed To Reducing National Deficit - Anwar
PUTRAJAYA, June 20 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim said the government is committed to consistently reducing the country's fiscal deficit to ensure a more sustainable economy and to maintain investor confidence.
Anwar, who is also the Finance Minister, said the fiscal deficit was at 5.5 per cent when he assumed leadership in 2022. It was reduced to 4.1 per cent in 2024, with a projection of 3.8 per cent for this year.
"Some people ask why we want to reduce the deficit so much. Why not just give more to the people? But if we don’t do it this way, investor confidence will not be there.
"For me, the foremost responsibility of leadership and economic management is to implement policies that we believe are good – that is what matters most.
"Secondly, with investor confidence, we can solve many issues related to national revenue, job opportunities, and overall development,” he said at the Finance Ministry’s monthly assembly here today.
Anwar said the government debt has fallen from RM100 billion in 2022 to RM85 billion in 2024. It is projected to be RM80 billion this year.
"This means we have reduced the debt by RM20 billion since taking over," he said.
He said various debt figures were often cited, but the issue today is not about the cumulative total.
"The problem is, there are those who refuse to listen to explanations despite repetitions in Parliament — it is as if it is a 'dialogue with the deaf',” he said.
Anwar also rejected claims that the government has over-emphasised debt reduction to the point of neglecting public welfare.
He explained that resolving the national debt issue is a gradual and incremental process. It requires time and patience.
"It’s like a son taking over a well-known company after the patriarch's demise. The company owes RM50,000 — the son cannot possibly settle that debt in one year. It has to be resolved gradually," he said.
-- BERNAMA