Federal deficit narrows to 3.7% as new borrowing falls in 2025 - Auditor-General
THE Federal Government’s fiscal position improved in 2025, with its deficit narrowing to 3.7 per cent of gross domestic product (GDP) from 4.1 per cent a year earlier as revenue surplus increased and new borrowing declined. The National Audit Departm...
Malaysia's fiscal position improved in 2025, with the federal deficit narrowing to 3.7% of GDP from 4.1% the previous year. The National Audit Department reported that the deficit reduction exceeded the 3.8% target set under Budget 2025. New borrowing fell by 8.2% to RM185.577 billion, down from RM202.248 billion in 2024. The government's debt grew more slowly from 2021 to 2025, from 10.2% to 5.9% of GDP.
The Auditor-General issued an unqualified opinion on the federal government's financial statements but noted weaknesses in the recovery of callable loans, with only 5% of RM9.273 billion in arrears collected in 2025.
Written by urgent.news from The Vibes's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
