National debt manageable, Parliament told

KUALA LUMPUR, Nov 29 — The federal government debt as of June this year was RM685.1 billion or 50.9 per cent of the Gross Domestic Product, with the debt manageable and the country categorised as a medium-indebted nation, the Dewan Rakyat was told today.

In a written reply to Datuk Fauzi Abdul Rahman (PKR-Indera Mahkota), the Finance Ministry said RM662.4 billion (96.7 per cent) was domestic debt and RM22.7 billion (3.3 per cent), offshore loans.

It said that for 2017, gross loans amounted to RM108 billion where the principal repayment was RM67.2 billion and loans to finance the deficit amounted to RM39.9 billion.

The ministry said the government always ensured that the repayment of the principal and interest were in good order and, so far, the government had never failed to make the repayments as scheduled.

In a written reply to Dr Lee Boon Chye (PKR-Gopeng), the ministry said the government had guaranteed debts totalling RM217.37 billion as of June 30 this year.

It said the guarantee was given to four statutory bodies and 26 subsidiaries of the Minister of Finance Incorporated to implement high-impact national strategic projects.

“It is also aimed at benefiting the people as a whole and was divided into the educational, services, infrastructure, finance, investment and utilities sectors,” it added. — Bernama