Malaysia’s national debt is at its highest yet: at a whopping RM456.12 billion, according to the 2011 Auditor-General’s report.
It is a RM49.02 billion (12%) increase from 2010′s figure (RM407.1b) and 51.77% of the country’s RM881.08 billion Gross Domestic Product (GDP).
In comparison, 2011′s debt percentage of the national GDP was lower (2010 recorded 53.15%).
This might be due to the RM115.1 billion increase in GDP, of which a total of RM765.9 billion was recorded in 2010.
According to the report, about RM438.02 billion of Malaysia’s national debt was local while the remaining RM18.1 billion was foreign.
The country also appeared to be spending more this year due to its rising debt. The report said that 2011′s expenditure due to the debt was RM17.72 billion, from 2010′s RM15.62 billion.
At the same time, the country’s deficit was shown to have reduced to 2008 levels, recorded at RM42.5 billion of the GDP, or 4.82%.
In 2008, Malaysia’s GDP stood at RM740.72 billion, with a deficit of RM35.57, or 4.8%.
Last year’s deficit was also lower than 2010 and 2009 numbers, which were at RM43.24b (5.64%) and RM47.42b (7.03%).
These numbers were despite a 16.1% increase in government revenue, which saw Putrajaya collecting an estimated RM185.42 billion, compared to 2010′s 159.65 billion.
The report said that efforts to control 2011′s deficit were due to foreign and local loans, which the Auditor-General’s Department said, grew by as much as RM36.33 billion last year, or a total of 113.56 billion.
In 2011, the government had a total of RM107.09 billion in local loans, with RM6.47 billion in foreign loans.
The report added that the government also had a higher loan repayment in 2011, at about RM65.35 billion, or RM33.52 billion from 2010.