KUALA LUMPUR – The Federal Government’s financial performance saw significant improvement in 2023, with a notable surplus in revenue and a reduction in the overall deficit, according to the third Auditor-General’s (AG) Report for 2024.
The report, which covers the financial statements of the Federal Government for 2023, highlighted that the government recorded a revenue surplus of RM2.028 billion, reversing a trend seen in previous years.
In addition, the fiscal deficit narrowed by RM8.595 billion, bringing the deficit-to-GDP ratio down to 5.0% from 5.5% in 2022.
However, despite these positive developments, the report flagged concerns over rising federal liabilities. Total liabilities, which include federal debt and financial obligations, grew by RM92.038 billion (6.6%), reaching RM1.492 trillion in 2023, up from RM1.400 trillion the previous year.
Government guarantees to 13 companies also saw an increase, rising by RM3.288 billion (1.5%) to RM227.404 billion. At the same time, dividends received by the government dropped sharply by RM9.756 billion (17.5%) compared to 2022, contributing to some fiscal pressure.
“The Federal Government should reduce the fiscal deficit and reliance on new borrowing by improving the efficiency of revenue collection, implementing targeted spending that provides value for money, and strengthening the financial management governance of government-owned companies,” the AG said in a press statement.
The AG issued an unmodified opinion on the Federal Government’s financial statements, affirming their fairness and accuracy but urged caution regarding the growing liabilities.
The government was advised to continue its efforts to improve revenue collection and tighten spending to address fiscal challenges in the coming years.
The report also provided an update on the implementation of projects under the 12th Malaysia Plan (RMKe-12), with nearly 41.1% of the 8,279 projects currently in progress.
Additionally, the financial performance of 13 state governments was audited, with five states receiving an unmodified opinion.
A total of 260 recommendations were made to improve financial governance at both federal and state levels. – October 14, 2024