KUALA LUMPUR (Feb 3): With global economic growth expected to slow down in 2023 amid a possible recession, Malaysia's upcoming Budget 2023 will prioritise the pursuit of prudent economic growth with a focus on social justice for the people.

"This step is being taken despite the government's heavy debt burden and uncertain global economic outlook," said the Prime Minister’s Office (PMO) in a statement.

"The government is also committed to taking measures to gradually reduce the deficit and ensure that the government's debt and liability ratio to gross domestic product (GDP) remains under control," it added

The federal government's debt and liabilities will reach nearly RM1.5 trillion or 80% of GDP in 2022, with the debt service ratio expected to exceed 15% of revenue.

By comparison, in 2020 and 2021, when the country was still struggling with the Covid 19 pandemic, the federal government's debt stood at RM979 billion and RM879 billion, respectively.

The PMO said Budget 2023 - to be retabled on Feb 24 - will also include measures to attract private sector investment and reform the public sector aimed at reducing bureaucracy, enhancing the ease of doing business and improving governance.

"This budget will also increase development expenditure to promote inclusive development, especially through the strengthening of government services and rural infrastructure," it added.

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