National debt continues to rise, oil subsidies to be reduced – should the people worry?
Government debt continues to rise, reaching RM1.247 trillion by the end of 2024.
However, according to Prime Minister Datuk Seri Anwar Ibrahim, the debt growth rate is slowing down, dropping to 6.4% in 2024 compared to 8.6% in 2023 and 10.2% in 2022.
In addition, the government managed to reduce gross borrowing to RM198 billion last year, lower than RM226.6 billion in 2023.
With a fiscal deficit target of 4.1% this year, several steps are being taken to increase the country's revenue, including expanding the sales and services tax (SST) and implementing e-invoices in stages.
However, the most controversial measure is the RON95 subsidy which is set to be reduced by mid-2025.
This measure is said to be aimed at improving spending efficiency and helping the vulnerable, but its impact on the people is still a question mark.
The government may see the economy stabilizing, but with more taxes and fewer subsidies, will the people really feel relieved… or will they be squeezed even further?
