A-G report: Petroleum products recorded highest expenditure in 2022
PUTRAJAYA spent RM55.443bil on subsidies in 2022, which is an increase of 322.1% (RM42.309bil) compared to 2021, where subsidies cost RM13.134bil.
“Subsidies for petroleum products recorded the highest expenditure, amounting to RM45.184bil or 81.5% of the total expenditure,” the Auditor-General’s Report 2022 revealed.
In 2022, the government reported a total revenue of RM294.357bil against an expenditure of RM395.246bil, resulting in a deficit of RM99.48bil.
The audit statement, which audited the Federal Government’s financial statement, said both revenue and expenditure in 2022 were higher than the previous year.
The government also managed to narrow its fiscal deficit to 5.6% of the gross domestic product (GDP) in 2022, compared to 6.4% in the previous year.
“The final budget approved for operating expenditures was RM236.966bil, while the actual operating expenditures incurred were RM292.693bil,” the report said.
The Finance Ministry recorded the highest operating expenditure among the ministries, with RM120.174bil or 40.8%, of the Federal Government’s total operating expenditure in 2022, (which is) an increase of RM47.125bil or 64.5%, compared to RM73.049bil in 2021,” it said.
The significant increase in subsidies led to an increase in the Finance Ministry’s expenditure.
Expenditure from the Covid-19 fund amounted to RM30.979bil in 2022, with the accumulated expenditure from the Covid-19 fund totalling RM106.70bil by the end of 2022.
Federal debt stood at RM1,079.591bil in 2022, up from RM979.814bil in 2021.
The federal debt-to-GDP ratio for 2022 was 60.3%, which remained below the debt ceiling limit of 65%.
The statutory debt-to-GDP ratio stood at 57.6% in 2022, which is a decrease from 59.6% in 2021.
Total liabilities stood at RM1.399 trillion as at the end of 2022, which is an increase of RM94.116bil or 7.2%, from RM1.305 trillion in 2021.
On another note, the report said the balance of 1Malaysia Development Bhd’s Assets Recovery Trust Account stood at RM1.927bil at the end of 2022, which is 87.4% lower than 2021, as a bulk of the fund was used to repay 1MDB debts which matured last year.
There was a reduction of RM13.353bil in the fund, from RM15.281bil in 2021.
“Funds amounting to RM15.535bil from the asset recovery funds were used to service the principal and interest payments for bonds which matured in 2022 and were guaranteed by the government,” the report said.
The government has also paid off RM985.01mil in SRC International Sdn Bhd borrowings, thereby completing all government guarantee debts related to the subsidiary of 1MDB.
Prime Minister Datuk Seri Anwar Ibrahim previously said that Putrajaya is seeking to recover more funds from Goldman Sachs in relation to the scandal.
Goldman Sachs agreed to pay US$2.5bil (RM11.62bil) in cash and return US$1.4bil (RM6.5bil) in assets in a settlement during former prime minister Tan Sri Muhyiddin Yassin’s administration.
According to past reports, Goldman Sachs had helped 1MDB raise US$6.5bil (RM30.22bil) in two bond offerings that netted the bank US$600mil (RM2.7bil) in fees.
