KUALA LUMPUR: A new law will be tabled in Parliament for better management of the nation's finances, particularly to cap the statutory debt limit to 65% of the country's gross domestic product , says Datuk Seri Ahmad MaslanThe Deputy Finance Minister said the legislation was needed as the country had outstanding debt of about RM1.5 trillion."Among the components of the proposed law is that the government cannot incur debt for operating expenditure.
"We are also looking at capping the Federal Government's statutory debt to 65% of gross domestic product ," he added. The Pontian MP also said that the new law would ensure that service charges for outstanding debts do not exceed 15% of the nation's annual budget. He said managing the debt services charges was crucial to ensure more money could be used for development projects instead of just paying interest.