Selangor Journal
A woman wearing protective face mask walks past the Prime Minister’s Office in Putrajaya, on September 24, 2020. — Picture by REUTERS

Public sector debt at RM1.2 trillion

KUALA LUMPUR, Nov 6 — Public sector debt till June 2020 increased to RM1.2 trillion or 85.5 per cent of Gross Domestic Product (GDP) due to higher Federal Government fiscal deficit to finance the Covid-19 pandemic stimulus measures, the Finance Ministry said.

Last year, it was RM1.136 trillion or 75.2 per cent of GDP.

The largest component in public sector debt is the Federal Government’s debt of RM854.1 billion or 69.4 per cent of the total, followed by the liabilities from non-financial public corporations (NFPCs) which account for 24.4 per cent and statutory bodies at 6.2 per cent.

Statutory bodies guaranteed debt rose to RM75.7 billion, mainly attributed to additional sukuk issuances by the Public Sector Housing Financing Board to finance public sector employees’ housing loans, the ministry said in the Fiscal Outlook and Federal Government Revenue Estimates 2021 report released today.

In addition, NFPCs’ debt also increased to RM300.4 billion, which includes additional funding facilities drawdown to finance the capital expenditure in relation to the development of the Mass Rapid Transit project as well investments in the oil and gas sector.

Public sector debt represents consolidated debts of the Federal Government, state government, NFPCs and sovereign-guaranteed debt of statutory bodies.

— Bernama

 

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