THE Auditor-General’s Report on the financial statements of the federal and state governments, as well as state agencies for the year 2021, was tabled in the Dewan Rakyat today.

Auditor-General Nik Azman Nik Abdul Majid said the National Audit Department (NAD) improved on the report by providing infographics on audit findings to summarise the results as a whole.

“The infographics are expected to help readers obtain important information from the audit, which was conducted quickly and accurately.

“On tabling day, the department will also give a briefing on the main issues of the audit findings raised in the report to members of the Public Accounts Committee in Parliament,” he said in a statement.

Nik Azman said the report contains several important matters, including the verification of the federal government’s financial statements for the year ending December 31, 2021, which shows an accurate and fair picture of the government’s financial position for the year in question.

“The accounting records were maintained in an orderly and up-to-date manner. However, the Auditor-General’s Certificate was with Emphasis of Matter paragraphs pertaining to matters such as gross loan receipts in 2021 amounting to RM217.2 billion (RM194.56 billion in 2020), an increase of RM22.65 billion or 11.6%.

“In addition, RM113.76 billion or 52.4% of the total gross loans obtained in 2021 were used for the principal payment of maturing loans,” he said, explaining that the Emphasis of Matter highlights a fundamental matter that, in the auditor’s opinion, needs to be paid attention to, without affecting the auditor’s opinion.

Nik Azman also said that the gross loans amounting to RM217.2 billion resulted in an increase in federal debt to RM979.81 billion or 63.4% of the GDP last year.

On the analysis of the federal government’s financial performance in 2021, he said the government revenue increased 3.9% to RM233.75 billion from RM225.08 billion in the previous year.

“Operating expenditure amounted to RM231.52 billion, an increase of RM6.92 billion or 3.1% compared with 2020, which amounted to RM224.6 billion.

“Surplus revenue amounted to RM2.24 billion, an increase of RM1.761 billion compared with 2020, which amounted to RM475 million. This surplus has been transferred to the development fund,” he said.

Meanwhile, Nik Azman said Covid expenses had amounted to RM37.71 billion last year, which was a decrease of RM308.22 million or 0.8% compared to the previous year, which amounted to RM38.02 billion.

“Overall, the federal government recorded a deficit of RM98.74 billion with a ratio of 6.4% of the GDP (RM87.64 billion or 6.2% of the GDP in 2020), while the federal debt in 2021 amounted to RM979.81 billion with a ratio of 63.4% of the GDP.

He said for the Report on the State Government and State Agency Financial Statements 2021, a total of 13 state government financial statements for the year ending December 31, 2021 had been submitted within the permitted period, which was between January and last April.

“The audit conducted found that the financial statements for Kelantan, Negri Sembilan, Pahang, Selangor and Terengganu were given an Audit Certificate Without Reprimand, while seven states (Johor, Malacca, Perak, Perlis, Penang, Sabah and Sarawak) were given Opinion Without Reprimand with Other Matter Paragraphs.

“Kedah was given an Opinion Without Reprimand with Other Matter Paragraphs and Emphasis of Matters,” he said, adding that the Report on the Federal Government’s Financial Statement would be uploaded on the NAD website after it is tabled in the Dewan Rakyat.

Meanwhile, the report for the 13 states will only be uploaded on the NAD website after being tabled in the respective state legislative assemblies. – Bernama, October 6, 2022.