Malaysia Debt 100% of GDP By 2019

About 2 years ago when the country was shocked by the announcement of Idris Jala (CEO Guide) that Malaysia will go bankrupt in 2019. According to a study by Boston Consulting Group (BCG) Malaysia will achieve the bankrupt when:

        * Government Debt> 100% of GDP
        * The fiscal deficit> 10% of GDP
Such opinions voiced & reminded once again by one economist, Professor Emeritus Datuk Dr Mohamed Ariff Abdul Kareem of the Malaysian economy is currently.

The National Debt & GDP By 2019 If Putrajaya to wasteful

    Malaysia's debt would reach 100 percent of gross domestic product (GDP) by 2019 if Putrajaya continued to borrow more of their revenues, according to economists. Former executive director of Malaysian Institute of Economic Research (MIER) Mohamed Ariff Abdul Kareem reminded that the rate of revenue from the federal government is too slow and unable to pay loans increased 53.1 per cent of GDP in 2010.

    He said the government's total debt incurred is not too big, but the rate of growth in recent years concern. Debt-GDP ratio increased from 41.1 percent in 2008 to 53.1 percent in 2010 while government debt increased 14.6 per cent in 2008 and 18.3 percent in 2010, far outpacing the growth in national GDP, Mohamad Ariff added.

    "If there are no plans to change this trend in expenditure and revenue, public debt would reach 100 percent of GDP by 2019. "If the growth of debt faster, this can happen very soon," he said via e-mail to The Malaysian Insider.

    Mohamad Ariff explained when the government fiscal stimulus measures to face global economic krises where it is used for infrastructure development there is a need to reduce the civil service, which is the basis Putrajaya expense management. He said the Malaysian public service - the largest per capita in Asia Pacific according to the OECD - an increase of 23.3 per cent in 2007 operating budget to 33.1 percent in 2010, rose to 41.6 percent in 2010 if pension payments are included.