Govt’s financial performance improved in 2023, says auditor-general

 

The auditor-general has advised the government to continue increasing revenue from various sources and improve public expenditure management. (AP pic)

PETALING JAYA: 

The government recorded improved financial performance in 2023 with a surplus increase of RM2.028 billion and a deficit reduction of RM8.595 billion compared with 2022.

This brought the country’s deficit-to-gross domestic product (GDP) ratio down to 5% in 2023 from 5.5% in 2022, according to the auditor-general’s report 3/2023 on the government’s financial statements for 2023 presented in the Dewan Rakyat today.

The development fund’s deficit amounted to RM10.217 billion, showing a reduction of RM1.734 billion (14.5%) compared with RM11.951 billion in 2022,

 the report stated.

However, the government needs to pay attention to the trend of increasing federal liabilities, which consist of federal debt and financial liabilities, which increased by RM92.038 billion (6.6%) to RM1.492 trillion compared with RM1.4 trillion in 2022.

In the report, the auditor-general also advised the government to continue increasing revenue from various sources and improve public expenditure management.

The report also recommended that the government should ensure prudent public debt management to reduce reliance on new loans.

The report revealed that the government’s guarantee commitments to 13 companies increased by 1.5% to RM3.288 billion in 2023.

Dividends received by the government showed a significant decline of RM9.756 billion (17.5%) compared with RM55.815 billion in 2022

The report also noted the upward trend in federal liabilities-to-GDP ratio, which increased from 78% in 2022 to 81.8% in 2023.

The federal debt-to-GDP ratio increased from 60.2% in 2022 to 64.3% in 2023 while the statutory debt-to-GDP ratio increased from 57.5% in 2022 to 62.1% in 2023.

3,942 projects under 12MP in progress

The report also noted that 3,942 projects, or 45.9% of the 8,593 development projects under the 12th Malaysia Plan (12MP), are in progress as of Aug 26.

However, 169 of these ongoing projects are experiencing delays or difficulties.

The report stated that 1,434 projects are in the post-implementation stage, 3,085 projects are in the pre-implementation stage, and 132 projects are categorised as cancelled or under review.

According to the report, the expenditure for 12MP projects from 2021 to 2023 amounted to RM231.920 billion, exceeding the approved allocation of RM222.756 billion for the same period.

The figure is 55.9% of the total allocation ceiling of RM415 billion for the implementation of 12MP projects.

The report recommended more rigorous and continuous monitoring, along with immediate intervention measures, to ensure that the projects under 12MP can be completed by the end of 2025.

The overall performance of 12MP projects can only be assessed at the end of 2025. In this regard, project monitoring should be enhanced to achieve the set objectives,

 the report stated. - FMT