PETALING JAYA: The government’s financial performance improved in 2023 with a RM2.028bil increase in revenue surplus and a deficit decrease of RM8.595bil compared to 2022, says the Auditor-General’s Report.
The national deficit-to-GDP ratio fell to 5% in 2023, down from 5.5% in 2022.
However, the report said the government needs to pay attention to the increasing trend of liabilities – consisting of federal debt and financial liabilities – which increased by RM92.038bil (or 6.6%) to RM1.492 trillion, compared with RM1.400 trillion in 2022.
The report, presented in the Dewan Rakyat yesterday, said revenue had risen to RM316.469bil, up from RM295.764bil in the previous year.
“Expenditure for 2023 stands at RM307.356bil, a significant reduction from the previous year’s RM395.246bil,” it said.
The Federal Liability position in 2023 showed an increase, with the Federal Liability-to-GDP Ratio rising to 81.8% compared to 78.0% in 2022.
The country’s debt-to-GDP ratio also climbed from 60.2% in 2022 to 64.3% in 2023.
“The Government must pay attention to the increasing trend of Federal Liabilities,” said Auditor-General Datuk Wan Suraya Wan Mohd Radzi.
The report also noted that the Statutory Debt Ratio stood at 62.1% in 2023, up from 57.5% in the previous year.
The Auditor-General’s Office acknowledged the initiatives undertaken by the government to address these concerns, including the approval of the Public Finance and Fiscal Responsibility Bill 2023 (Act 850).
The Auditor-General advised the Government to reduce the fiscal deficit and debt dependence by increasing tax revenue collection efficiency and ensuring thorough monitoring and evaluation of government corporations’ financial statements.
The Accounts Receivable in 2023 stood at RM98.367bil, compared to RM105.824bil in the previous year, the Auditor-General said in the report.
The Inland Revenue Board (LHDN) accounted for 35.2% of the receivables, totalling RM34.591bil. It was a decrease of RM5.794bil, or 14.3%, primarily due to a deficit assessment of RM6.976bil and a write-off of RM726.70mil.
Another RM52.530bil of receivables was from loans and advances recoverable from companies, state governments, statutory bodies, cooperatives and various agencies.
Of the total receivables in 2023, RM28.412bil (28.9%) had remained uncollected for over six years.
A total of RM1.635bil was written off, with receivable tenures over six years making up RM1.355bil of this amount.
The Auditor-General’s Report 3/2024 Series 3 highlighted two main issues: the performance of development projects under the 3rd Rolling Plan of the 12th Malaysia Plan (RMK12) up to Dec 31 of last year, and key audit areas affecting the Federal Government’s financial performance in 2023.
Five states – Johor, Pahang, Perak, Sarawak and Sabah – received an unmodified opinion from the Auditor-General for their financial statements for the year ending Dec 31, 2023, submitted between January and June 2024.
“Eight states – Kedah, Kelantan, Melaka, Negri Sembilan, Perlis, Penang, Selangor and Terengganu – received an unmodified opinion with additional notes,” the report stated.
The Auditor-General made 260 recommendations for improvement to ministries, departments, agencies and state governments’ companies.
