Nation’s finances stable despite higher debt, says auditor-general

The increase in national debt by 10.2 percent from 2021 to 2022 is not something to be worried about, said auditor-general Wan Suraya Wan Mohd Radzi.

“I want to emphasise that the country’s financial statements are stable. In fact, it’s much better than last year. So yes, debt has increased but at the same time, our revenue and financial performance have also increased, as well as our gross domestic product (GDP).

“And that is why we gave a Certificates Without Reprimand with Other Matter which is a higher rank than the last two years.

“Debt is unavoidable because we need more money for programmes, and it also allows us to utilise the loans and repayment.

“All in all, it’s better than last year and it’s stable,” she told reporters in Parliament today.

According to the Auditor-General’s Report 2022 published today, the national debt rose from RM979.814 billion in 2021 to RM1.079 trillion last year.

Its total liabilities were positioned at RM1.399 trillion, increased by RM94.116 billion or 7.2 percent in 2022 compared to RM1.305 trillion in 2021.

Meanwhile, the Federal Liability ratio to GDP in 2022 decreased to 78.1 percent from 84.3 percent in 2021.

Wan Suraya said the total revenue of the federal government in 2022 was at RM294.357 billion which is a 25.9 percent increase compared to 2021’s RM233.752 billion.

The federal government’s deficit in 2022 was recorded at RM99.482 billion or 5.6 percent of GDP.

Maintained and updated

The Auditor-General’s Report was presented in Parliament today after receiving approval from the Yang di-Pertuan Agong on Sept 26.

It contains 15 reports involving two at the federal level, namely the Federal Government's Financial Statements 2022 and the Financial Statements and Compliance Auditing of Federal Agencies 2021.

In a statement later, Wan Suraya said the accounting records of the federal government’s financial statements were adequately maintained and updated.

She added that the “road to recovery” from the Covid-19 pandemic was due to an increase in funds for development - both physical and non-physical.

“That is what we envisage and what the Auditor-General’s Department is continuing to push to ensure there is more money and more allocation for development, while at the same time managing debt,” she added.

Among the sectors she pointed out was the oil and gas industry of which Petronas had paid an RM50 billion dividend in 2022 compared to RM25 billion in 2021. - Mkini