KUALA LUMPUR, Feb 4 — Finance Minister II Datuk Seri Amir Hamzah Azizan today defended the official fiscal deficit data, as he dismissed the allegation made by Pandan Member of Parliament, Datuk Seri Rafizi Ramli, who suggested the large sum of unrefunded overpaid taxes could mask the true gap.
Amir said the Government Financial Statistics Manual underpins how the fiscal deficit is calculated, and the manual adopts auditing standards recognised worldwide.
“It’s not right to question how the government calculates the fiscal deficit. The reporting method is based on international standards and is accepted by credit assessment agencies and world bodies,” he said in his ministry’s winding‑up session on the motion of thanks for the Royal Address.
“The fiscal deficit calculation is based on the Government Financial Statistics Manual that is also used by other countries. The Auditor‑General has also issued an opinion that the Federal Government Financial Statements present a true and fair view,” the senator added.
The Anwar government recently faced pressure to expedite the refund of overpaid taxes, which Rafizi said reached RM33.3 billion between 2020 and 2024.
The Pandan MP then suggested the large sum could conceal the country’s actual fiscal deficit. Addressing the Dewan Rakyat, Rafizi said the delay in returning overpaid taxes to individuals and companies effectively allows Putrajaya to report higher revenue than it genuinely retains.
He described this as a consequence of “cash accounting”, where revenue is recorded upon collection without deducting funds owed back to taxpayers.
Amir Hamzah responded, asserting that a cash‑based accounting system is normal for a government. He said it is used in both developed and developing countries, including Singapore, India, Germany, the Netherlands and Norway.
