Govt borrowed less in 2025, but collected just 5pc of RM9.273b in loan arrears, says Audit Dept

The Federal Government's financial performance improved in 2025, with a revenue surplus increase of RM2.184 billion and a deficit reduction of RM3.878 billion compared to 2024. The Auditor General's Report (LKAN) 2/2026 revealed that the deficit-to-GDP ratio declined from 4.1 per cent to 3.7 per cent, surpassing the 3.8 per cent target set in the 2025 Budget.

The report also highlighted that the Federal Government's debt growth rate declined from 10.2 per cent to 5.9 per cent over five years, with new borrowings decreasing by 8.2 per cent. However, the collection of arrears for recoverable loans remained low at five per cent of the total RM9.273 billion collected in 2025, indicating the need for loan restructuring.

Brief written by urgent.news from Malay Mail's own syndicated text. Machine-written — may contain errors; check the original before relying on it.