'Proposed fiscal responsibility act will send strong signal for public finances'

 

The proposed Fiscal Responsibility Act (FRA) will send a strong signal to the market and put in place a good governance framework for public finances, said Economy Minister Rafizi Ramli.

There is a need to regulate how the country would spend money through legislation, which is why the proposed FRA is expected to be tabled in the Parliament soon, he added.

"The plan and idea for the FRA have been there and people have been talking about it, everyone accepts (that) governance should not just be talked about but put into a framework.

"It is part and parcel of what we need to do to strengthen the economy," he told the media after delivering a keynote address at the Association of Chartered Certified Accountants (ACCA) Stakeholders’ Appreciation Reception in Kuala Lumpur last night.

The government's focus today is mainly based on three areas, which are to strengthen the country's fiscal position, to increase revenue, and to structure the economy, according to Rafizi.

"Our problems in the past are basically how we spend our money. With FRA, it will harmonise and (instil) the discipline to guide the whole government machinery all the way down," he added.

Rafizi noted that the Finance Ministry is responsible for tabling the FRA while his ministry, which manages the development spending, will give input on the proposed bill.

On Feb 24, Prime Minister Anwar Ibrahim, during the tabling of the revised Budget 2023, reaffirmed that the government will be presenting the FRA this year to ensure greater transparency and accountable management of the economy.

- Bernama