KUALA LUMPUR – The Public Finance and Fiscal Responsibility Bill 2023 was presented for the first reading in the Dewan Rakyat today.
Deputy Finance Minister I Datuk Seri Ahmad Maslan, who presented the bill, said the second reading was also scheduled for this sitting.
The bill aims to make provisions for the government’s responsibility, accountability, governance and transparency in managing public finances and fiscal risk – particularly in relation to revenue, expenditure, loans and debt, reporting annual budget documents and other document publications, as well as other related matters.
According to the Parliament’s website, the minister is responsible for formulating and implementing the government’s fiscal policy with the objective of ensuring public financial sustainability, preserving macroeconomic stability and protecting the well-being of the people.
The bill also states fiscal objectives and quantitative values, including ensuring minimum annual development expenditure as a percentage of gross domestic product (GDP) to generate economic growth.
The government must also achieve a sustainable fiscal balance and a prudent level of debt as a percentage of GDP in the medium term.
“The objective is also to limit exposure to fiscal risk in relation to any financial guarantee as a percentage of GDP,” according to the website.
Earlier this year, Ahmad Maslan had said that the Fiscal Responsibility Act will include several components such as capping the government’s debt percentage at 65% of the GDP and debt service charges at 15% of the federal government’s annual budget. – October 9, 2023