Statutory debt ceiling raised to RM110bil or 65% of GDP, says Finance Minister

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KUALA LUMPUR: Putrajaya decided to raise its statutory debt ceiling to 65% of the gross domestic product (GDP) as it was RM5bil short of reaching the threshold in September, says Tengku Datuk Seri Zafrul Abdul Aziz.

The Finance Minister also said the government had spent RM60bil for various programs to combat the pandemic since the start of the year.

"RM60bil has been spent and the remaining debt ceiling at the end of September stood at merely RM5bil," he said when tabling the second reading on amendments to the Temporary Measures for Govt Financing Bill in Parliament on Monday. This, he said, would fund additional KWC spending, which amounts to RM45bil, as well as 12th Malaysian Plan projects.

"We were facing the Covid-19 pandemic at the start of the year. As a proactive measure, the government implemented four stimulus packages – Permai, Pemerkasa, Pemerkasa Tambahan and Pemulih.""Therefore, amendments to the Bill and raising the statutory debt limit is very important to fulfil the following commitments, as well as to fund measures for this year and 2022 to ensure that the momentum of recovery can be maintained," he said.

 

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It's incumbent upon the current Govt to explain to our younger generations what that percentage means to each and every one of them ...

In no time it'll keep going up, horrifyingly!

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