Fiscal Deficit (% GDP)
- 2023: 5.0%
- 2024: 4.1% (↓ from 2023, below 4.3% target)
- 2025 (Projected): 3.8% → Improving toward 3% by 2028
Debt Position
(a) Absolute Debt:
- 2022: RM1.399T (78.1% of GDP)
- 2024: RM1.2T
- 2025: RM1.5T (record high)
(b) Debt-to-GDP Ratio:
- 2023: 64.3%
- 2024: 64.6%
- 2025: 64.2% (projected) → Stagnant
(a) Tax Revenue (% GDP):
- 2023: ~12.0%
- 2024: 12.5%
- 2025: 12.4% →Below 15% threshold
(b) Petroleum Revenue (% GDP):
- 2025: 1.0% (↓33% from 2023)
(c) Rigid Expenditure Share:
- 2022: 40%
- 2024: 48% → Crowding out investments
Social & Development
(a) STR/SARA Allocation:
- 2024: RM10+B
- 2025: RM13B (↑30% YoY)
(b) Development Expenditure (% GDP):
- 2024: 4.4%
- 2025: 4.1% →2-year decline
Critical Trends
(a) Positive:
- Net borrowings ↓ to RM76.8B (2024 vs. RM92.6B 2023)
(b) Risks:
- Development spending ↓ to 4.1% of GDP
- Petroleum revenue ↓ 33% since 2023
Key Takeaway
Structural weaknesses persist:
- Tax revenue critically low
- Rigid costs crowd out growth investments
- Absolute debt at record high
- →Requires GST/wealth taxes + subsidy restructuring
Practical Impact:
Every 10% SST on "non-essentials" (e.g., glassware, chocolates) and 8% tax on commercial leases directly funds initiatives like:
- Sumbangan MADANI cash aid (RM2.5b budget)
- Public transport subsidies (RM1.8b)
- Rural healthcare expansion
(16/6/2025)