Govt’s debt may increase to RM1.3t on Budget 2021

by FARA AISYAH/FILE PIX

Former Prime Minister (PM) Tun Dr Mahathir Mohamad expects the government to borrow more money to implement the biggest budget for the country under Budget 2021.

“This is estimated to increase government debt to RM1.3 trillion. That is a lot of money. If you fail to service loans, you may be bankrupted,” he said in a statement today.

The government will be spending a total of RM322.5 billion for the country’s operation and development next year.

Additionally, Dr Mahathir said, the government has to service loans and also reduce the principals, which would need RM35 billion.

Meanwhile, total charge expenditure is RM72.3 billion or 30.6% of operating expenditure of RM236.5 billion.

Dr Mahathir also said the expectation of economic recovery is too optimistic.

“The rosy picture of immediate recovery once the Covid-19 pandemic is overcome is not going to happen,” he added.

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Read our previous report here