Najib took to Facebook to ask this question after highlighting that Putrajaya recorded less revenue than it projected in the first quarter of 2021 than the second quarter of 2020 despite fewer restrictions under the second movement control order (MCO 2.0) and higher global oil prices.
The government only recorded RM49.5 billion in revenue for the first quarter of this year – 21% of the full-year estimate of RM236.9 billion. The revenue in the second quarter of 2020 was RM56.5 billion.
As for the government’s expenses, it spent RM81 billion for Q2 2020 and RM86.6 billion for Q1 2021.
The drop in revenue, however, meant the deficit for Q1 2021 (RM37.1 billion) was much larger than it was in Q2 2020 (RM24.6 billion).
“The government’s overall deficit for 2020 is RM86.5 billion while the approved deficit for 2021 is RM84.8 billion.
“We are only in the first quarter of the year and the government’s deficit has hit 44% of the approved RM84.8 billion deficit for 2021,” Najib said.
Should this trend continue, he said, the 2021 deficit would surpass RM148 billion – some RM64 billion more than estimated for the year – ultimately increasing the country’s debts.
He said this is why it was important for the government’s finances to be monitored by Parliament.
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