BORROWING money to service debts can only be a short-term and temporary measure, said Nik Azman Nik Abdul Majid. 

The auditor-general said Putrajaya needs to find a long-term solution to the problem. 

“It is true that loans are always made to finance mainly development expenditure. 

“Only now, in this year and last year, when Covid-19 hit, that part of the loan was used to finance the government’s fight against the pandemic and to stimulate economic generators to help companies affected by Covid-19,” Nik Azman told the media today following the release of the latest edition of the Auditor-General’s Report to parliament today. 

Nik Azman said his department understands the situation Putrajaya faces, but stressed that the current increase in debt cannot continue. 

Earlier today, in a statement, Public Accounts Committee chairman Wong Kah Woh said the committee is concerned about the high percentage of national revenue going towards servicing debt. 

“Of the RM62.317 billion allocated to the Development Fund, only RM40.994 billion (65.8%) was used for development expenditure purposes, compared with RM37.53 billion (77.3%) in 2020. 

“A total of RM12.612 billion (20.2%) was used to bear PFI (private finance initiative) liabilities and guarantee commitments, and RM8.711 billion (14%) was used for the purpose of classifying operating expenses for development,” he said in the statement. 

The Auditor-General’s Report on the financial statements of the federal government, state governments and state agencies for the year 2021 was tabled in the Dewan Rakyat earlier. 

Nik Azman said the National Audit Department improved the report by providing infographics on audit findings to summarise the audit result as a whole.

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

Nik Azman explained that 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. – October 6, 2022.