Urgent need to table Fiscal Responsibility Act in October

KUALA LUMPUR: The Fiscal Policy Committee (FPC) has unanimously agreed on the significance and urgency of tabling the Fiscal Responsibility Act (FRA) in the Parliamentary session this October, according to the Ministry of Finance (MoF).

The FRA, which is formulated to suit the Malaysian context, is expected to improve the country’s fiscal legal framework.

“It contains robust fiscal management principles with an emphasis on governance, accountability and transparency in managing public finance,” the ministry said in a statement today.

It said the Act would accentuate the accountability of the Minister of Finance to the Parliament in carrying out his responsibilities to formulate fiscal policy and manage public monies.

Prime Minister and Minister of Finance Datuk Seri Anwar Ibrahim chaired the FPC meeting today to review the country’s latest economic development as well as the government’s current fiscal position and medium-term fiscal projections in preparation for the upcoming Budget 2024.

The FPC deliberated on the gross domestic product growth projections, the government’s fiscal position, and the medium-term fiscal framework for Budget 2024 formulation.

The meeting was attended by Deputy Prime Minister and Minister of Rural and Regional Development, Datuk Seri Dr Ahmad Zahid Hamidi; Minister of Economy, Rafizi Ramli; Chief Secretary to the Government, Tan Sri Mohd Zuki Ali; Treasury Secretary-General, Datuk Johan Mahmood Merican as well as senior officials from MoF, the Ministry of Economy and Bank Negara Malaysia.

The committee plays a key role in formulating strategies, providing guidance on improving the management of public finances and strengthening the government’s financial position in the medium and long term. – BK