Kuala lumpur: The Federal Government's fiscal deficit has continued to shrink for five consecutive years, demonstrating the government's commitment to an economic and fiscal reform plan that has yielded results, said Deputy Finance Minister Liew Chin Tong.

According to BERNAMA News Agency, Liew highlighted that the Federal Government's fiscal deficit has consistently shown a declining trend, reaching 3.7 percent of the gross domestic product (GDP) in 2025. This marks a significant reduction from 4.1 percent in 2024, 5.0 percent in 2023, 5.5 percent in 2022, and 6.4 percent in 2021.

The Deputy Finance Minister further stated that new government borrowing has also seen a decline as part of the fiscal consolidation efforts. Borrowing reduced from RM100 billion in 2021 and 2022 to RM92.6 billion in 2023, and further decreased to RM77 billion in 2024, eventually reaching RM75.6 billion last year.

Liew emphasized that the implementation of a more prudent fiscal policy has led to a consistent downward trend in the Federal Government's debt growth rate. "The government's debt decreased to 5.9 percent in 2025 from 6.4 percent in 2024, 8.6 percent in 2023, 10.2 percent in 2022, and 11.4 percent in 2021," he noted during a question-and-answer session in the Dewan Negara.

In response to Senator Datuk Leong Ngah Ngah's inquiry about strengthening the fiscal position amid a debt ratio nearing 60 percent of GDP, Liew mentioned that by the end of March 2026, the government debt ratio was at 63.1 percent of GDP, an improvement from 65.2 percent at the end of 2025.

The Deputy Minister explained that the reporting of the debt ratio is based on the current year's GDP, a method consistently applied to previous years as well. He assured that the government maintains discipline and compliance with all statutory debt limits.

Liew elaborated that statutory debt, which includes Malaysian Government Securities (MGS), Malaysian Government Investment Issues (MGII), and Malaysian Islamic Treasury Bills (MITB), was 63.9 percent of GDP at the end of 2025 and decreased to 61.9 percent by the end of March 2026, remaining below the 65 percent threshold.

He also mentioned that offshore loans, amounting to RM20.8 billion, are well below the RM35 billion ceiling, and Malaysian Treasury Bills, totaling RM4.5 billion, remain under the RM10 billion limit.