Govt’s finances improved in 2025, says audit dept
The Malaysian audit department reported an improvement in federal government finances for 2025, noting a reduction in the deficit-to-GDP ratio and slower debt growth. However, the report highlighted ongoing challenges with the collection of arrears for recoverable loans.
Why it matters
Fiscal health reports are vital for assessing a nation's economic stability and the effectiveness of government financial management.
The federal government’s debt growth rate from 2021 to 2025 declined from 10.2% to 5.9%, the audit department said.
KUALA LUMPUR: The federal government’s financial performance improved in 2025, with its revenue surplus increasing by RM2.184 billion and its deficit narrowing by RM3.878 billion compared with 2024.
In a statement on the auditor-general’s (A-G) report released today, the national audit department said the deficit-to-GDP ratio also declined from 4.1% to 3.7% in 2025.
"This achievement is better than the 3.8% target set in the 2025 budget. It lays a solid foundation for achieving the medium-term deficit target of below 3%," it said.
The A-G's report covers Putrajaya's financial statements for 2025, the activities of federal ministries and departments, the financial statements and activities of state governments, agencies, ministries and departments, as well as the management of state-owned companies.
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