KUALA LUMPUR, July 31 — The implementation of fiscal consolidation measures is expected to reduce the fiscal deficit to below three per cent and ensure that the debt level does not exceed 60 per cent of the country’s estimated gross domestic product (GDP).
According to the 13th Malaysia Plan (13MP) main document, themed 'Melakar Semula Pembangunan', good governance practices, centred on accountability, transparency and efficiency under the Public Finance and Fiscal Responsibility Act 2023, will be adopted in public financial management.
“Government revenue collection will be improved through the implementation of an electronic invoice system in stages until 2026 to increase the digitalisation of tax collection.
“In addition, the expansion of the tax revenue base under the medium-term revenue strategy (MTRS), such as the implementation of the Global Minimum Tax (GMT) as well as the periodic review of the Sales and Service Tax (SST) will be implemented to enable the provision of more facilities and assistance for the well-being of the people,” it stated.
According to the Economy Ministry's document containing the five-year plan, spending efficiency will be improved through the implementation of more targeted subsidies and assistance, as well as more prudent debt management.
It stated that fiscal management efficiency will also be improved through project management reforms involving more systematic monitoring and evaluation.
“Cost control mechanisms will be improved by taking into account key elements in cost calculations, including life cycle costs.
“The implementation of public-private partnership (PPP) projects will also be rationalised by focusing on a user-based payment model to provide service options to the people,” the document said.
— Bernama
