Ahmad Maslan, Rafizi suggest ways to reduce national debt

 

Deputy Finance Minister Ahmad Maslan has put forward seven measures to reduce the national debt, which has now reached almost RM1.5 trillion.

He said the first step was to increase the government's revenue, followed by reducing leakages such as corruption.

“Thirdly, let’s tighten enforcement in eliminating smuggling and fourth, reduce the black market.

“Fifth, increase the digitisation of the economy, followed by avoiding all forms of wastages and lastly, subsidies need to be targeted (to the right groups),” he said on Twitter today.

However, Ahmad did not provide further details beyond listing the measures.

Bagaimana kurangkan hutang Kjaan rm1.5T ?
1) Tambah pendapatan Kjaan
2) Kurangkan ketirisan spt rasuah
3) Ketatkan penguatkuasaan spt hapus penyeludupan
4) Kurangkan ekonomi gelap
5) Tingkatkan pendigitalan ekonomi
6) Elakkan segala bentuk pembaziran
7) Subsidi perlu bersasar. pic.twitter.com/SDelrohKbW

— Ahmad b Maslan (@ahmadmaslan) January 18, 2023

Yesterday Prime Minister Anwar Ibrahim said the national debt, including liabilities, has now reached almost RM1.5 trillion and efforts to reduce it should be expedited.

He said the latest national debt position has reached more than 80 percent of the nation’s gross domestic product (GDP).

The budget deficit may likely be wider than initially expected, which was 5.8 percent of GDP for 2022.

Deputy Finance Minister Ahmad Maslan

Anwar also Malaysia could save up to RM10 billion from leakages that occurred in the government’s procurement process.

Economic Affairs Minister Rafizi Ramli also picked up on this, telling Harian Metro it could be a short-term approach to strengthening Putrajaya’s fiscal position.

“We can ensure that we optimise delivery and cost efficiency of each government project as a way to save money and prevent leakages,” the Pandan MP said.

Rafizi also said the government’s revenue collection must be expanded.

Economic Affairs Minister Rafizi Ramli

“There is also an urgent need to restructure Malaysia’s economy to increase the number of services and high-value companies operating in the country.”

He added that although the national debt was high, the government need not panic, but should focus on improving the way it manages the country’s finances. - Mkini