KUALA LUMPUR: The government will publish a mid-year Budget performance report once the Public Finance and Fiscal Responsibility Bill 2023 comes into force.
Deputy Finance Minister I Datuk Seri Ahmad Maslan said the report will allow the government to be transparent on its spending and ensure that the establishment of fiscal policy bill is in line with responsible fiscal management principles.
"Previously, the mid-year year financial report was not a requirement. However, once the Financial Responsibility Act (FRA) comes into effect, the mid-year financial performance report must be presented every September.
"The report is also one of the Finance Ministry's key performance indicators to ensure the four fiscal aspects of FRA are achieved once implemented.
"Even though FRA has not yet been passed, the government has already started the mid-year report which can be viewed on the ministry's website," he told a press conference in Parliament, today.
Yesterday, the first reading of the bill was tabled in Dewan Rakyat, while the second reading is scheduled to be tabled later this week.
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 the nation's revenue, expenditure, loans and debt, reporting annual budget documents and other document publications.
The bill also comprised four numerical aspects, including having annual development expenditure as a percentage of growth domestic product (GDP) of at least three per cent; fiscal deficit as a percentage of GDP of negative three per cent or less within three to five years; debt level as a percentage of GDP at 60 per cent or less within three to five years; and financial guarantees as a percentage of GDP not exceeding 25 per cent.
Ahmad added that the bill is also expected to enhance the framework of public financial management and complement the Financial Procedure Act (FPA) 1957.
"This is because the bill focuses on the government's fiscal management strategy, while the FPA 1957 emphasises the aspects of public financial management and control."
At the same time, he added that the government must also explain in Parliament if any irregularities occur, preventing the four aspects of the FRA from being achieved.
"For example, if any irregularities happen and prevent the aspects from being achieved, the ministry must present it in a special session or regular session of the Dewan Rakyat (on what had transpired)."
