The government is enacting measures to boost revenue, improve spending efficiency, and manage fiscal commitments, including tax reforms and a new procurement act.
KUALA LUMPUR: The government is implementing a range of measures to strengthen national revenue and improve spending efficiency.
According to the Ministry of Finance, these include revising tax rates, broadening the revenue base, and enhancing tax administration.
Digitalisation initiatives are also being pursued to reduce revenue leakage.
On expenditure, efficiency is being increased through targeted fuel subsidies to reduce leakage and the restructuring of public spending.
Transparency in government procurement is being improved via the newly enacted Government Procurement Act.
To control risks from contingent liabilities, the government has set a financial guarantee exposure limit of 25% of GDP through Act 850.
“The MoF is also reviewing the implementation of mega projects that will increase the government’s financial commitment,” the ministry stated.
Any new project with significant financial requirements will be approved based on the government’s medium-term fiscal capacity.
Other measures include rationalising public-private partnership projects by focusing on a user-pay model.
This aims to reduce direct financial commitments from the government, aligning with goals under the 13th Malaysia Plan.
“The government will also improve the management and governance of government-linked companies through the proposal for relevant legislation,” the MoF added.
This legislation aims to strengthen corporate governance, increase accountability, and optimise company operations.
The details were provided in a parliamentary reply to Senator Datuk Seri Dr Mujahid Yusof.
