Fiscal Responsibility Bill to be tabled in October

PUTRAJAYA - The Fiscal Responsibility Bill (FRA) will be tabled soon in Parliament this October.

This was reached unanimously through the Fiscal Policy Committee (FPC) meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim today.

Anwar, in a statement, said that the FRA was drafted in accordance with the Malaysian context and is expected to improve the country's fiscal legal framework.

He said FRA contains strong fiscal management principles with an emphasis on governance, accountability, and transparency in public financial management.

"This act will also emphasise the accountability of the Finance Minister to Parliament in carrying out his responsibility of enacting fiscal policy and managing public money," he said.

The Prime Minister said that the committee had examined the growth projection of the Gross Domestic Product (GDP), the government's fiscal position, and the medium-term fiscal framework for the preparation of the 2024 Budget and found that there is room to continue improving strategy, governance, and efficiency in the country's financial management.

He added that it includes drafting strategies and initiatives to strengthen the country's revenue management to ensure the sustainability of revenue generation.

"At the same time, the government will continue efforts to increase the efficiency of spending and reduce leakage and waste.

"In this regard, fiscal consolidation measures will continue to be implemented in stages to rebuild the fiscal space besides reducing debt and liability levels," he said.

Anwar insisted that in implementing fiscal reforms, it is important to balance the needs of economic development and safeguard the welfare of the people.

"Despite having to carry out reforms that may be painful to expand the country's income and close the leakage from bulk subsidies, we also need to be aware of the cost of living challenges faced by the people, especially in an uncertain global economic environment," he explained.

In the meantime, Anwar said that he had never stopped ensuring that the fiscal reform did not burden the people in need at all.

"This fiscal reform still needs to take into account spending to stimulate the economy and investment.

"Therefore, the sequence and scope of fiscal reform must be considered so that it does not bring a drastic shock to the economy or the people," he said.