PRIME Minister Datuk Seri Anwar Ibrahim said the government was confident of reducing the country’s sovereign debt to RM86 billion this year.

He said the sovereign debt has been trending downwards in the past three years, from RM100 billion in 2021 and 2022 to RM93 billion in 2023.

“To achieve the lower yearly borrowing target, the government has to ensure more prudent spending, avoid waste, and only borrow when necessary for development purposes.

“It is important for us to plug potential financial leakages and for taxpayers to fulfill their obligations.

“What I want is that those who should pay must pay. I don’t care when this happens, but there must be stricter efforts. Ensure that those obligated to pay must pay, and there should be no leakage,” he said at the National Tax Conference opening ceremony in Kuala Lumpur.

Anwar, who is also finance minister, said other efforts include tackling corruption.

“Subsidies are also an important part of government spending that needs to be rationalised.

“Subsidies rationalisation is a comprehensive effort that covers a broader spectrum to help reduce the government’s yearly borrowing,” he said.

The prime minister said the government is currently mitigating diesel rationalisation and the issue of implementing RON95 subsidy rationalisation had not been brought up.

“The issue of rationalising RON95 subsidies has not been raised as we are currently dealing with diesel and providing the people with proper understanding is vital because sometimes this issue can be twisted.

“But if subsidy rationalisation is not implemented, the country’s revenue will not increase and debt will increase instead,” he added. – July 22, 2024