KUALA LUMPUR, 12 Oct: It has been reported that Malaysia has been enjoying a surplus between years 1993 to 1997, when Datuk Seri Anwar Ibrahim was appointed the Minister of Finance, said the Executive Director of the People’s Institute, Azrul Azwar Ahmad Tajudin.
He said, in that period, the country managed to record a surplus of RM6.6 billion, the highest value ever achieved in the annual budget.
However, he said, the country’s financial performance plunged into a severe deficit in 2009, when Prime Minister Datuk Seri Najib Razak took over the reins of the government administration.
“The worst deficit ever recorded was in year 2009, at a total of RM47.4 billion, while in terms of the percentage of the Gross Domestic Product (GDP), it was at 9.7 percent.
“Since 2009, we have seen the lowest additional supply two times per year, resulting in the increase of overall spending up to nearly RM260 billion to date,” he said in the National Audit Report Forum: Biased Governance, Leakages and Corruption at the Petaling Jaya CIty Council (MBPJ) Civic Hall just now.
The audit report which was presented recently, showed some extreme wastage and leakages, including the upgrading project of the Kota Kinabalu International Airport; the Malaysian Emergency Responses Services (MERS) 999 project by the Ministry of Information, Communication and Culture; the national sewerage project and the delay in tax collection by the Inland Revenue Board (LHDN).
Last August, Fitch Ratings, a credit rating agency, placed Malaysia’s credit rating at stable to negative, and questioned the government’s move of ignoring financial reform, especially after the recent election ended.
Azrul said, the national debt now stands at RM500 billion with the GDP percentage being at 35 percent as of the end of year 2012.
According to him, there is no guarantee from the Central Government to spend prudently because additional supplies are released at least twice a year since 2009.
“It will be difficult for us to keep the national debt below 55 percent at all times because the government is not implementing any fiscal reforms,” he added.
