Govt’s financial performance improved in 2023, says AG

PETALING JAYA: The government reported improved financial performance in 2023, with a revenue surplus increase of RM2.028bil and a deficit reduction of RM8.595bil compared with 2022.

The fiscal deficit has decreased to RM90.887bil, a noteworthy improvement from RM99.482bil in 2022. This brought down the national deficit-to-GDP ratio to 5.0% in 2023, down from 5.5% in 2022.

The report underscores that revenues for the federal government have risen to RM316.469bil, marking an increase from RM295.764bil in the previous year, according to the Auditor-General’s report 3/2023 on the government’s financial statements for 2023 presented in the Dewan Rakyat on Monday (Oct 14).

“Expenditure for 2023 stands at RM307.356bil, a significant reduction from the previous year’s RM395.246bil,” the report stated.

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Notably, there were no Covid-19-related expenditures reported for 2023, a stark contrast to the RM30.979bil allocated in 2022, indicating a shift towards post-pandemic recovery.

Public funds have been recorded at RM69.766bil, a decrease from RM83.656bil last year. This adjustment reflects the government’s strategic focus on efficient fund management and aligning expenditure with revenue growth.

In the report, the Auditor-General advised the government that it should reduce the fiscal deficit and debt dependence by increasing tax revenue collection efficiency and ensuring value for money through monitoring and evaluation of government company financial statements.