Government still servicing inherited debt, including RM13b in 1MDB bonds, – Anwar

The government inherited more than RM1 trillion in national debt, with Anwar citing RM13 billion in 1MDB bonds as part of its ongoing financial obligations.

KUALA LUMPUR: The government continues to shoulder financial obligations inherited from previous administrations, including RM13 billion in bonds issued by 1Malaysia Development Berhad (1MDB), Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar, who is also Finance Minister, dismissed claims that the government was accumulating fresh debt simply to finance its day-to-day expenditure.

He explained that national debt naturally increases when the government runs a budget deficit and relies on borrowing to bridge the shortfall.