By the end of 2009, total federal government debt had soared to RM362 billion – a leap of RM56 billion from the previous year.
Much of this was due to soaring domestic debt, which reached RM349 billion or 96 per cent of the total federal government debt, according to the national audit report for 2009. Total federal government debt to GDP ratio rose to 53.7 per cent – exceeding 50 per cent for the first time in recent years.
Bank Negara reports that central government debt (total current liabilities) reached RM378 billion in the first quarter of 2010 and RM388 billion in the second quarter.
The previous years’ figures for federal government debt:
2005 – RM229b (46.2% of GDP)
2006 – RM242b (42.3%)
2007 – RM267b (42.8%)
2008 – RM306b (41.4%)
2009 – RM362b (53.7%
Now this rising trend should be cause for concern.
The country’s gross external debt (including the central government’s foreign debt of RM17 billion) stood at RM251 billion in the second quarter of 2010 – up from RM247 billion in the previous quarter.
International reserves, on the other hand, reached RM323 billion as at 15 October 2010.
For your homework(!), work out the per capita debt for each one of us.