Budget 2025: National debt to reduce to RM80bil with an increase in revenue to RM340mil

The Star

Prime Minister Datuk Seri Anwar Ibrahim said government debt is expected to be brought to RM80bil by 2025 from RM100bil in 2020.   He also said the government’s revenue projection for 2025 is RM340bil, compared to the projection for 2024 of RM322bil.  Read more at https://shorturl.at/pci1s  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00To guarantee change, the reformation policy must be well-prepared with confidence that it must be excelled

00:10by adopting more fresh and aggressive fiscal reforms,

00:16enabling the institution to ramp up the level of effort and efficiency, as well as the need for service to the people.

00:24Therefore, the Fiscal Responsibility and Public Finance Act has set a clear guideline

00:34regarding the management of debt and fiscal deficit.

00:37Debt will continue to increase as long as the deficit is not reduced.

00:42Therefore, firm and level measures have been taken by the government to consistently reduce the deficit.

00:50From 5.5% in 2022 to 5.2% in 2023,

00:58followed by 4.3% in 2024 and 3.8% in 2025.

01:09Or in other words, which is a lot of confusion about the amount of debt.

01:17Accumulated debt, old debt, new debt, that's what we reduce.

01:22I promise we will not add debt.

01:26Listen carefully.

01:27What I said is that in 2022, the government owes Rp 100 billion.

01:34In 2023, we will reduce it to Rp 90 billion.

01:40In 2024, it is estimated to be reduced to Rp 85 billion.

01:47And the budget for next year 2025, from Rp 100 billion, we will reduce it to Rp 80 billion.

01:57This means a clear and responsible debt reduction.

02:02And this means that if the deficit can be reduced,

02:06and new loans are listed every year,

02:10we can achieve the simple FRA budget,

02:14which is a fiscal deficit of 3% and a debt balance of less than 60% of GDP.

02:23This year, the total revenue was reduced,

02:26higher than the initial reduction to Rp 322 billion,

02:31compared to Rp 308 billion.

02:34The government also expects the total revenue in 2025 to continue to rise to Rp 340 billion.

02:44Therefore, we are grateful and thank you to the customers in LHDN.

02:50But we are grateful for the real increase in revenue.

02:53Therefore, the base of revenue is still low.

02:57Malaysia has the lowest revenue allocation system in Asia,

03:05while subsidy spending has risen to the highest level in Asia.

03:12We have to deal with this issue.

03:14The base of revenue needs to be expanded.

03:18The base of revenue is still the lowest,

03:21which is Rp 12.6% of GDP in 2023,

03:29compared to Rp 16.1% in Thailand,

03:33Rp 14.1% in the Philippines,

03:36and Rp 13.7% in Singapore.

03:41We have to bear the subsidy, incentive and assistance to the people,

03:46which is Rp 80 billion last year.

03:50Subsidy and assistance to the people is Rp 80 billion.

03:55It is not a problem.

03:57The problem is when it is enjoyed by the rich and foreigners.

04:03Rp 80 billion is partially enjoyed by the rich and foreigners.

04:12And this has to be solved.

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