KUALA LUMPUR, Nov 27 — The Dewan Negara has passed the Public Finance and Fiscal Responsibility Bill 2023, which is aimed at providing provisions for the government’s fiscal responsibility, accountability, governance, and transparency in managing public finances and fiscal risks.
During the winding up of the debate on the bill, Deputy Finance Minister II Steven Sim Chee Keong said passing the bill would act as check and balance on the government, especially the Finance Ministry (MoF), when setting fiscal targets.
“Therefore, from now on, after this bill has been passed, the MoF will not be able to set fiscal targets behind the closed door of the Treasury.
“This step does not take into account the government (party)...they must bring the targets to Parliament for debate and approval,” he said.
According to the Parliament’s website, the minister is responsible for formulating and implementing the government’s fiscal policy to ensure public finance sustainability, preserve macroeconomic stability and protect the well-being of the people.
The bill also states the fiscal objectives and quantitative values, including ensuring minimum annual development expenditure as a percentage of gross domestic product (GDP) to generate economic growth.
Earlier this year, Deputy Finance Minister I Datuk Seri Ahmad Maslan had said that the Fiscal Responsibility Act will include several components such as capping the government’s debt percentage at 65 per cent of the GDP and debt service charges at 15 per cent of the federal government’s annual budget.
— Bernama
