Audit report: Federal debt grew by RM147 billion over 5 years

audit

PETALING JAYA: The federal government’s debts have shown a gradual increase over the previous five years, growing from RM501.617 billion in 2012 to the present RM648.475 billion according to the 2016 Auditor-General’s Report.

Between the past two years, the report showed there was an increase of RM18 billion in total debt, increasing by 2.8% from RM630.54 billion in 2015 to RM648.475 billion.

The increase in debt, the report stated, was attributed to an increase in domestic debt of RM15.759 billion and overseas debt of RM2.176 billion last year.

The spending due to national debt (cost of getting loans and interests) also showed an increase for five consecutive years, from RM19.537 billion in 2012 to the present RM26.48 billion.

In 2015, the spending stood at RM24.283 billion and increased by RM2.197 billion or 9% to RM26.48 billion in 2016.

The federal government, the report said, had borrowed close to RM100 billion for development expenditures and to pay back debts previously incurred.