Prime Minister Dr Mahathir Mohamad said today that the country is in a healthier financial state with the national debt reducing as a result of GDP growth.

"When the GDP grows larger, the percentage of debts will reduce. This is a fact," he told the Dewan Rakyat during Minister's Question Time.

"Secondly, when we resolved several debts, our national debt reduced.

"We are now close to a level where it will not affect our efforts to administer and develop the country."