KUALA LUMPUR (Dec 4): Malaysia is on the right track to consistently reduce its deficit rate, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

He highlighted that the fiscal deficit had been declining, from 6.4% of gross domestic product (GDP) in 2021 to 5.5% in 2022, and 5% in 2023.

The 2024 deficit is projected to continue this downward trend, reaching 4.3%, and is targeted to reach 3.8% in 2025.

"It seems we are on the right track, as we project a drop below 3.8% next year. God willing, we will be able to manage it better," he said during a question-and-answer session in the Dewan Negara on Wednesday.

Amir Hamzah was responding to a supplementary question from Senator Hussin Ismail, who asked about the national debt.

He explained that, in line with the reduced deficit, the government's new debt decreased from RM99.4 billion in 2022 to RM92.6 billion in 2023, and is estimated to fall further to RM84.7 billion in 2024, with a target of around RM80 billion by 2025.

The government aims to reduce the deficit in accordance with the Public Finance and Fiscal Responsibility Act 2023 (Act 850), which sets a target fiscal deficit of 3% between 2026 and 2028.

https://www.theedgemarkets.com/node/736536