New Fiscal Responsibility Law To Help Rein In Debt

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The Public Finance and Fiscal Responsibility Bill 2023 was tabled in the Dewan Rakyat yesterday, aimed at macroeconomic stability, paring down debt and prudent fiscal risk management.
Deputy Finance Minister I Ahmad Maslan said the bill will be put for second reading today and further details on the government’s plans will be detailed in Budget 2024, which will be tabled this Friday.
He said the government’s aim was targetting an annual development expenditure of at least three percent of GDP and a budget deficit of three percent, or less, of GDP.
This, he explained, will allow the government to pare debt as a percentage of GDP to 60 percent and below within three to five years.
Prime Minister Anwar Ibrahim said during his Budget 2023 speech in February that debt-to-GDP was 81 percent at end-2022.
"The bill is important to ensure responsibility and transparency in the country's fiscal and economic policies," Ahmad said at a press briefing in Parliament yesterday, according to Bernama.
He added that emphasising the new law will improve the Finance Ministry's accountability to Parliament.
The law will require Putrajaya to be more transparent in financial reporting and compel more reporting.
"The function and role of the Fiscal Policy Committee will be strengthened to ensure fiscal policies are implemented in line with responsible fiscal management principles," he said.
Ahmad added that the government will also continue fiscal renewal initiatives, including the Medium-Term Revenue Strategy, reviewing public spending and introducing a Government Procurement Act to ensure long-term financial sustainability. - Mkini

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