Kuala lumpur: The government’s debt is being repaid in stages, following set timelines to ensure the repayment does not disrupt the country’s development, said Prime Minister Datuk Seri Anwar Ibrahim. He stated that the government has decided to gradually reduce new debt while considering the nation’s development needs.

According to BERNAMA News Agency, Prime Minister Anwar explained that while the government could reduce the debt immediately, it would place a heavy burden on the people. As a result, the government is aiming to reduce new debt from RM100 billion to RM75 billion or RM70 billion. This information was shared during the Minister’s Question Time (MQT) in the Dewan Rakyat today.

Earlier, Anwar highlighted the reduction in new government borrowings, noting a decline from about RM100 billion in 2021 to RM99 billion in 2022, RM92 billion in 2023, and RM77 billion projected for 2024. He emphasized that the reduction in national borrowing reflects the government’s capacity to continue essential projects, which include flood mitigation, basic infrastructure, education, and health.

In response to a supplementary question from Syahredzan Johan (Bangi-PH) regarding the government’s debt level, Anwar addressed concerns about the statutory debt limit of 65 percent of GDP and the characterization of external debt as dangerous. He assured that the government is repaying debt according to its obligations and scheduled dates.

He further projected that if the government maintains its current strategy, the national debt will begin to decline from the end of 2028-2029. Anwar stressed the importance of expediting measures to reduce the deficit to achieve this goal.