Malaysiakini reported Prime Minister Tun Dr Mahathir Mohamad as saying today that the country is in a healthier financial state with the national debt reducing as a result of GDP growth.
It is impossible for the Debt-to-GDP ratio to have registered a decrease in 2018, as not only did our GDP growth dip 1.2 per cent from the previous year, our budget recorded a 3.7 per cent deficit, 0.7 per cent higher than what it was in 2017.
MALIM NAWAR: Malaysiakini reported Prime Minister Tun Dr Mahathir Mohamad as saying today that the country is in a healthier financial state with the national debt reducing as a result of GDP growth.
“When the GDP grows larger, the percentage of debts will reduce. This is a fact,” he was quoted telling the Dewan Rakyat during Minister’s Question Time.
“Secondly, when we resolved several debts, our national debt reduced.
“We are now close to a level where it will not affect our efforts to administer and develop the country.”
These are but lies and constitute a clear attempt by an elected Member of Parliament (MP) to mislead the Dewan Rakyat.
According to an analyst, and as affirmed by TTF, official Bank Negara figures show that the national debt was at RM686.8 billion prior to the 14thgeneral election, a fact even the least savvy of internet users could affirm by browsing through the central bank’s official site.
A quick check would reveal that our total GDP in 2017, crunched using current exchange rates, stood at a reasonable RM1.353 trillion, bringing the exact value of the Debt-to-GDP ratio for the year ending 2017 at 50.7 per cent.
The GDP for 2018, on the other hand, rose RM7.6 billion as the country added RM54.3 billion to its debt pile, bringing the new Debt-to-GDP ratio to an exact 51.8 per cent, 1.1 per cent upstream of what the previous Barisan Nasional government left us with.
It is impossible for the Debt-to-GDP ratio to have registered a decrease in 2018, as not only did our GDP growth dip 1.2 per cent from the previous year, our budget recorded a 3.7 per cent deficit, 0.7 per cent higher than what it was in 2017.
One wonders if the Minister of Finance is aware of all this or if it is he who fed the Prime Minister with grossly inaccurate estimates.