Government did not borrow to pay civil servants’ salaries

emolument Minister of Finance Lim Guan Eng speaks to the journalists after the Dewan Rakyat sitting at the Parliament. PIX: FAREEZ FADZIL / MalaysiaGazette / 14 OCTOBER 2019 emolument Kelantan state government
Minister of Finance Lim Guan Eng speaks to the journalists after the Dewan Rakyat sitting at the Parliament. PIX: FAREEZ FADZIL / MalaysiaGazette / 14 OCTOBER 2019

By Kumara Sabapatty

KUALA LUMPUR – The government under the Pakatan Harapan (PH) leadership has never borrowed to pay for the salaries of the civil servants.

Finance Minister Lim Guan Eng said that it has been proven when Malaysia’s sovereign credit rating remain high at A3 or A with a stable outlook.

He explained that if the federal government resort to taking loans in order to pay for the salaries of the civil servants, it credit rating will definitely drop.

“I would like to emphasize here that the government has enough of resources to support the expenditure on salaries and there is no need for us to do so.

“In addition, the government is meeting its target in reducing its fiscal deficit from 3.7 percent from GDP in 2018 to 3.4 percent this year. All borrowings made by the government was to support the fiscal deficit and development costs. This is also the common practice of the previous administration,” he said.

The Member of Parliament of Bagan also denied the allegations made by the State Assemblyman of Rantau, Datuk Seri Mohamad Hasan during his speech at the Negeri Sembilan State Assembly on 25 November 2019 where he said that the government took up loans to pay for civil servants’ salaries.

“For the third quarter in 2019, the emolument of the Federal Government totalled up to RM19.9 billion. In comparison, the government’s income in the same quarter was RM68.8 billion. This showed that the government’s income was three times more than its emolument,” he said.

In the statement, Guan Eng also attached a comparison on government’s income for each quarter beginning from Q2 2018 until Q3 2019, where the government’s income was consistently bigger than its emolument.

emolument federal government lim guan eng

According to him, the latest statistics has been published by the Ministry of Finance. It can be found on page 8 in the Malaysian Quarterly Economic Annual Report and is always updated and announced for public information. It can also be downloaded for free at the Treasury’s website,

He also said that the federal Government is always able to pay the salaries of its civil servants and fulfil its other financial obligations.

“This is different from the situation faced by the Kelantan state government where the Ministry of Finance has approved an advance for the state government amounting to RM100 million on 14 October 2019 to pay a part of the state’s expenses, including the salaries of the state administration.

“In 2018, the Federal Government had also made an advance amounting RM91.5 million to the state government for the similar objective, for the welfare of the people in Kelantan.

“Therefore, it is obvious that the criticism from Datuk Seri Mohamad Hasan had missed its point. It should be targeted at the Kelantan state government and not the Federal Government,” he emphasized. -MalaysiaGazette

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