(1)
(1) This ThisAct Actmay may be be cited cited as the as the Public Public Finance Finance and and Fiscal Fiscal Responsibility Responsibility Act 2023. Act 2023.
(2) This
(2) ThisAct Actcomes comesinto intooperation operationonona a date date to to be be appointed appointed by by the the Minister Minister by by notification notification in the in the and the and the Gazette, Gazette, Minister Minister may may appointappoint different different dates fordates the for comingtheinto coming intoofoperation operation different of different parts or parts orof this provisions provisions Act. of this Act.
Act 850
Public Finance And Fiscal Responsibility Act 2023
AKTA KEWANGAN AWAM DAN TANGGUNGJAWAB FISKAL 2023
An Act to make provisions on the responsibilities, accountability, governance andand transparency transparencyofofthethe Government Government in, in, managing managing the the public public finances finances and risk and fiscal fiscal risk specifically specifically in to in relation relation to revenue, revenue, expenditure, expenditure, borrowing borrowing and debt;and thedebt; the of reporting reporting annualof budget annual budget documentsdocuments and and publication publication of other of other documents; documents; and and to make to make for provisionsprovisions other for other matters matters connectedconnected therewith.therewith.
Data synced
Part I — Preliminary
This Act shall apply to the Government and Government entities.
This Act shall be read together with the relevant written laws and the the provisions provisions ofof this thisAct Actshall shallbebeininaddition to,to, addition andand notnot in derogation in of, of, derogation thethe provisions provisionsof of thethe relevant written relevant laws. written laws.
In this Act, unless the context otherwise requires—
“borrowing” means loans raised or moneys received under the Acts as specified in the Second Schedule;
“Committee” means the Fiscal Policy Committee established under section 28;
“debt” means all accumulated borrowings made by the Government;
“debt service charges” means any interest or profit rate and other expenses incurred in connection with the borrowing for which the Government is liable and is charged to the Federal Consolidated Fund;
“development expenditure” means moneys applied for the purposes specified in the First Schedule of the Development Funds Act 1966 [Act 406];
“economic indicator” indicator” means means anan indicator indicatorused usedininpreparing preparinga aforecasted forecastedfiscal fiscalposition, position,including includingbut butnot notlimited limited to to gross gross domestic product, commodity prices and foreign currency exchange rate;
“financial guarantee” means any guarantee given under subsection 14(1) of the Financial Procedure Act 1957 [Act 61], section 2 of the Loan Guarantee Act 1972 [Act 66], subsection 2(1) of the Loans Guarantee (Bodies Corporate) Act 1965 [Act 96] and section 2 of the Loan Guarantee Act 1963 [Act 412];
“financial year” “financial year” means meansa aperiod periodof oftwelve twelve months months ending ending on on the the 31st31st dayday of of December December in in anyany year; year;
“fiscal balance” means the difference between total revenue and total expenditure;
“fiscal objectives” means the objectives set by the Government under section 8;
“fiscal position” means the financial position of the Government consisting of revenue, expenditure, loan recovery and fiscal balance;
“fiscal risk” means transactions or circumstances referred to in subsection 20(2);
“Government entities” means—
(a) any company incorporated under the Companies Act 2016 [Act 777] where—
(i) in the case of a company limited by shares, the Minister of Finance incorporated under the Minister of Finance (Incorporation) Act 1957 [Act 375] 375]isisa a shareholder having shareholder moremore having than than fifty per fiftycent per of theof the cent shares of theof the shares company; or or company;
(ii) in the case of a company limited by guarantee, the Minister of Finance incorporated under the Minister of Finance (Incorporation) Act 1957 is a member of the company;
(b) any body corporate incorporated under the Trustees (Incorporation) Act 1952 [Act 258] by the Government; and
(c) any statutory body established under an Act of Parliament and is a public authority or an agency of the Government but does not include local authority;
“gross domestic product” has the meaning assigned to it under section 7;
“long term” means a period beyond five years;
“Minister” means the Minister charged with the responsibility for finance;
“medium term” means a period between three to five years;
“Medium Term Fiscal Framework” means the framework formulated by the Minister under section 9;
“operating expenditure” means expenditures referred to in Articles 98, 100, 101, 102 and 103 of the Federal Constitution;
“other liabilities” means other financial liabilities arising from realisation of financial guarantee or any other obligation that requires allocation from the Federal Consolidated Fund;
“public-private partnership” means a form of cooperation between the Government and private sector whereby a stand-alone business is created, funded and managed by the private sector on behalf of the Government that encompasses construction, management, maintenance and repair works, and replacement of public amenities such as buildings, infrastructures, equipment and facilities;
“quantified values” means the numerical target for fiscal objectives;
“revenue” means moneys received by the Government and paid into the Federal Consolidated Fund in accordance with Clause (1) of Article 97 of the Federal Constitution and accounted in the the Consolidated Consolidated Revenue RevenueAccount Accountunder underparagraph 7(a)7(a) paragraph of thethe of Financial Financial Procedure Procedure ActAct 1957; 1957;
“the Government” means the Federal Government.
Part II — Principles of fiscal policy
The Minister is responsible for formulating and implementing fiscal policy of the Government with the objectives of ensuring sustainability of public finance, preserving macroeconomic stability and safeguarding the well-being of the people.
(1) The formulation of fiscal policy shall be based on but not limited to the following general principles:
(a) accountability, which means the accountability of the Government in carrying out its responsibilities to manage fiscal policies;
(b) responsibility, which means the responsible management of Government resources and management of fiscal risks to maintain fiscal and environmental sustainability;
(c) transparency, which means timely publication of financial and non-financial information relating to the management of fiscal policy so as to allow the effective assessment on the conduct of fiscal policy and the state of the public finances; and
(d) intergenerational equity, which means the management of fiscal policy shall consider the impact on the well-being of the current and future generations.
(2) To achieve the fiscal policy objectives in section 5, the Government’s fiscal policy shall be based on the principles of responsible fiscal management as follows:
(a) ensuring macroeconomic stability;
(b) achieving and maintaining a sustainable fiscal balance;
(c) achieving and maintaining a prudent debt level; and
(d) ensuring effective fiscal risk management.
Gross domestic product shall be the latest available nominal gross domestic product of Malaysia as confirmed by the Minister.
(1) In accordance with the principles of responsible fiscal management in in subsection subsection6(2), 6(2),thetheGovernment Governmentshall pursue shall its pursue fiscal its objectives fiscal as as objectives follows: follows:
(a) to ensure a minimum annual development expenditure incurred as a percentage of gross domestic product in generating economic growth;
(b) to achieve a sustainable fiscal balance as a percentage of gross domestic product in the medium term;
(c) to achieve a prudent debt level as a percentage of gross domestic product in the medium term; and
(d) to limit limit the the exposure exposureto tofiscal riskrisk fiscal in in relation to any relation to financial any guarantees financial as a guarantees percentage as a percentageofofgross gross domestic product.
(2) The fiscal objectives shall be measured by the quantified values specified in the First Schedule.
(3) The quantified values shall consist of at least one numerical target to be achieved over the medium term.
(4) The key components of fiscal policy in achieving the fiscal objectives shall be as provided under Part III of this Act.
(1) The Minister shall formulate a Medium Term Fiscal Framework to guide fiscal planning, strategies and priorities in the medium term.
(2) The Medium Term Fiscal Framework shall be a three to five years projection of the Government’s fiscal position together with underlying assumptions of economic indicators forecast by the Government.
(3) The Medium Term Fiscal Framework shall be supported by a revenue strategy and a public expenditure policy.
Part III — Key components of fiscal policy
Division 1 — Revenue
(1)
(1) The Minister The Minister is is responsible responsible for and formulating for formulating and implementing implementing revenue revenue policy of the policy Governmentof the Government based on based on the principle of efficiency, the fairness principle of and equitability, efficiency, and theand fairness principle of responsible equitability, and fiscal the management principle under thisfiscal of responsible Act. management under this Act.
(2) The formulation of revenue policy shall be based on the following objectives:
(a) to achieve sufficient and sustainable revenue generation in the medium term and long term;
(b) to manage and administer revenue consistent with international best practices;
(c) to have an efficient tax system and fair legislative framework; and
(d) to maintain a reasonable degree of predictability and stability of tax policy.
(1) The revenue policy shall be competitive in the global environment, encourage investment and support long term economic growth.
(2) The Minister shall ensure the revenue generation is able to finance operating expenditure and development expenditure or at least to finance operating expenditure.
(3) The Government shall adopt effective and efficient revenue policies that—
(a) ensure sustainable revenue generation; and
(b) minimise possible revenue losses.
(1) The Minister shall formulate medium term revenue strategy and conduct a review of the revenue policy including but not limited to legislative framework and incentives structure in optimising revenue sources.
(2) The Minister shall, in respect of every financial year, prepare annual revenue estimates based on the changes in the revenue policy and legislation consistent with underlying assumptions of economic indicators and other related factors.
(3) The Minister shall make an assessment of the potential loss or gain of revenues and shall specify measures that can minimise such revenue losses.
(4) The Minister shall ensure revenue management and administration is in accordance with the objectives under subsection 10(2) and policy under section 11 relating to revenue.
Division 2 — Public expenditure
(1) The The Minister Ministeris is responsible for formulating responsible for and implementing formulating and public expenditure implementing policy in public an effective expenditure and an policy in efficient manner effective and to enhancemanner efficient fiscal to discipline, enhance public service fiscal delivery discipline, and resource public service allocation and delivery towards achieving resource overalltowards allocation socio-economic achieving objectives overall in accordance with socio-economic principlesinofaccordance objectives responsible with fiscalprinciples managementof under this Act. responsible fiscal management under this Act.
(2) The formulation of public expenditure policy shall be based on the following objectives:
(a) to instil fiscal discipline in public expenditure management;
(b) to ensure the alignment of public expenditure with revenue generation over the medium term;
(c) to ensure transparency in public expenditure; and
(d) to improve efficiency in public expenditure.
(3) In formulating public expenditure policy under this section, the Minister shall take into account the annual development expenditure as a percentage of gross domestic product as specified in the First Schedule.
(1) The formulation of public expenditure policy shall be comprehensive, realistic and transparent with a clear line of responsibility and accountability.
(2) The Government shall adopt effective and efficient public expenditure policies that—
(a) ensure public expenditure is managed prudently;
(b) resources are efficiently and effectively allocated;
(c) programmes and projects implemented have high impact and multiplier effect to the economy; and
(d) ensure that allocation spent are value for money.
(3) The Government shall, before making any decision and policy that involves additional expenditure, assess the financial implication together with expenditure recalibration or reprioritisation strategies and revenue measures.
(1) The Minister shall formulate medium term public expenditure policy as a comprehensive framework for the public expenditure planning.
(2) The Minister shall, in respect of every financial year, prepare a statement of the estimated expenditure based on the Government’s mandate and policy consistent with underlying assumptions of economic indicators and other related factors.
(3) The Minister shall monitor the performance of programmes and projects in the expenditure estimates and report its outcome to ensure optimal resource utilisation.
(4) The Minister shall publish a mid-year expenditure performance report under section 36 of this Act.
(5) The Minister shall, during the tabling of supplementary supply bill, state the purpose and source of funding in relation to the supplementary and excess expenditure, in the event the expenditure of that financial year exceeds the approved expenditure estimates either through saving, recalibration of expenditure, additional receipt or borrowing.
The Minister
(6) The Minister shall shall conduct conduct programmes programmes andevaluation and projects projects in the medium evaluation term and in the mediumreportterm his and findings and his findings report recommendations and to the Cabinet. to the Cabinet. recommendations
Division 3 — Borrowing and debt management
(1)(1) The The Minister is is Minister responsible for formulating responsible for and implementing formulating and borrowing implementing and debt management borrowing policy of and debt the Government management in policy of atheresponsible Governmentand in prudent manner with a responsible and the aim prudentof manner ensuring with debt affordability the and sustainability. aim of ensuring debt affordability and sustainability.
(2) The formulation of borrowing and debt management policy shall be based on the following objectives:
(a) to ensure the borrowing and debt management obligations of the Government are met in a timely manner at the lowest possible cost with a reasonable degree of risk;
(b) to promote promote the the development developmentandandefficient function efficient of function of thethe domestic domestic financial financial market; market; andand
(c) to ensure debt affordability and debt consolidation over the medium term and long term.
The borrowing made by the Government shall be in accordance with the Acts specified in the Second Schedule and shall be used for the purposes specified in the First Schedule of the Development Funds Act 1966 and for the repayment of debt.
(1) The total debt of the Government shall not exceed the percentage of gross domestic product as specified in the First Schedule.
(2) The Minister shall, in the event of total revenue exceeding total expenditure during the financial year, transfer any surplus between total revenue and total expenditure to the sinking fund created under section 12 of the Loan (Local) Act 1959 [Act 637] to reduce the Government debt.
(1)(1) The Minister The Minister shall, shall, before before the the commencement commencement of of a financial ayear, financial year, prepare a prepare a borrowing borrowing programme programme to to finance finance expenditure for expenditure the purposesfor the purposes specified in specified the First in theof the Schedule First Schedule Development of the Development Funds Act Funds 1966 and to Act repay1966 the and to repay maturing debtthe maturing for that debt financial for year.that financial year.
(2) The Minister may revise the borrowing programmes as he may deem necessary.
(3) The Minister shall, at all times, monitor borrowing, debt service charges and total debt.
(4) The Minister shall make an assessment of the debt sustainability in the medium term and report his findings and recommendations to the Government.
(5) The Minister shall ensure the execution of the borrowing and debt management policy are consistent and in accordance with the provisions of this Act.
Division 4 — Fiscal risk management
(1) The Minister is responsible for formulating the fiscal risk management policy of the Government with the aim to minimise and mitigate the risk exposure of the Government consistent with the principle of responsible fiscal management under subsection 6(2) of this Act.
(2) Fiscal risk means any transactions or circumstances that bind or may bind the Government to financial liability, including but not limited to—
(a) financial commitment to the Government arising from any financial guarantee, public-private partnership and Government entities;
(b) changes in any economic indicator that may result in additional financial commitment to the Government;
(c) the impact of natural disasters, climate change, pandemics and geopolitical situations that may result in additional financial commitment to the Government; and
(d) any other circumstances that can potentially expose the Government to a financial commitment.
The responsibilities of the Minister in relation to fiscal risk management shall be as follows:
(a) to identify the source of fiscal risk that may expose the Government to any financial liabilities;
(b) to assess and determine, during the financial year and after the end of each financial year—
(i) the financial performance of Government entities and recipients of financial guarantees that may result in exposing the Government to liabilities;
(ii) any decision by the Government that may bind the Government to an additional financial commitment;
(iii) any natural disaster and other circumstances that resulted in additional financial commitment and debt obligation; and
(iv) changes in economic indicators that may alter the fiscal position; and
(c) to formulate a plan to mitigate material risk to the fiscal position of the Government arising from matters specified under subsection 20(2).
The TheMinister in in Ministercarrying out the out carrying assessment the under paragraphunder assessment 21(b), shall provide paragraph financial 21(b), shall allocation provide andallocation financial disclose and fiscal risk disclose based on fiscal riskthe following based conditions:conditions: on the following
(a) where the fiscal risk assessed can be quantified with reasonable accuracy and the financial commitment that can be assigned in the medium term arises, that financial commitment shall be disclosed in the fiscal outlook report; or
(b) where the fiscal risk assessed cannot be quantified with reasonable accuracy or the financial commitment cannot be assigned in the medium term, that fiscal risk shall be disclosed in the fiscal risk statement.
(1) The Minister shall prepare and publish guidelines or policy framework to limit exposure to fiscal risk on the fiscal position of the Government arising from financial guarantee, public-private partnership and Government entities.
(2) No financial guarantee shall be given unless—
(a) the guarantee is consistent with the principles of responsible fiscal management under this Act;
(b) the terms and conditions of the guarantee are consistent with the guidelines or policy framework; and
(c) the amount of the guarantee shall not exceed the quantified value specified in the First Schedule.
(1)
(1) Where Where therethere is is aa possibility possibility for an event of default there isis aa significant or there significanteventeventhat thatmay mayresult result in a in a default default by by the the recipient recipient of ofthethefinancial financialguarantee, guarantee,the the Minister Minister shall shall lay the mitigation plan before the House of Representatives.
(2) Where the mitigation plan involves the utilization of amount from the Consolidated Fund, the amount shall be appropriated for in the expenditure estimates.
(1) The Government entities and the recipient of the financial guarantee shall submit an audited financial statement to the Treasury not later than six months from the financial year end.
(2) In the event where the audited financial statement has not been issued, the Government entities and the recipient of the financial guarantee shall submit an unaudited financial statement.
(3) Notwithstanding subsections (1) and (2), the Minister may, at any time, direct the Government entities and the recipient of the financial guarantee to submit their financial statement.
(4) For the purposes of subsection (1), ‘financial year’ means financial year as defined under the Companies Act 2016.
Part IV — Fiscal adjustment plan
(1)
(1) The The Government Government may may deviate deviate temporarily temporarily from the fiscal objectives referred referred toto ininsection section8 8upon uponthethe occurrence of occurrence a sudden of a suddenand andunpredictable unpredictableevent eventthat thatmay may pose pose significant risks to human life, economy and fiscal position.
(2) Prior to any deviation referred to in subsection (1), the Minister shall carry out an assessment to determine whether such event will cause a significant economic downturn, health crisis or affect the fiscal position of the Government.
(3) The Minister shall table such assessment referred to in subsection (2) to the Cabinet for approval.
(4) If the Cabinet is satisfied that such event will cause a significant economic downturn, health crisis or affect fiscal position of the Government, the Minister shall prepare and table a fiscal adjustment plan to the Cabinet for approval.
(5) The fiscal adjustment plan shall consist of—
(a) the reasons for the deviation from the fiscal objectives and its quantified values;
(b) the measures to be taken to return to the fiscal objectives and its quantified values;
expected period
(c) the expected period ofoftime timetotobebe taken taken to to return return to to the the fiscal objectives and its quantified values; fiscal objectives and its quantified values; and and
(d) other relevant information relating to the fiscal adjustment plan.
(6) The Minister shall lay the fiscal adjustment plan at the next meeting of the House of Representatives after the approval given by the Cabinet in subsection (4).
(1) If the fiscal objectives and the quantified values as specified in the First Schedule is not achieved, the Minister shall lay a fiscal adjustment plan to be approved by resolution of the House of Representatives.
(2) The fiscal adjustment plan shall consist of— reasons for
(a) reasons for not notachieving achievingthethe fiscal fiscal objectives objectives and and the the quantified quantified values; values;
(b) measures toto be betaken takenbybythethe Government Government to to achieve achieve the fiscal objectives and the quantified values; the fiscal objectives and the quantified values;
(c) the expected period of time to be taken by the Government to achieve the fiscal objectives and the quantified values; and
(d) other relevant information relating to the fiscal adjustment plan.
(3) I f t h e f i s c a l a d j u s t m e n t p l a n i s n o t a p p r o v e d , the House of Representatives may pass a resolution to require the Minister Minister toto improve improve the thefiscal fiscaladjustment adjustmentplan planto to be be laidlaid in thethe in House Houseof of Representatives Representatives as as soon as as soon practicable. practicable.
(4) The Minister shall update the progress of the measures stated in paragraph (2)(b) in the following annual fiscal outlook report.
Part V — Fiscal policy committee
There shall be a committee called the “Fiscal Policy Committee” which may make recommendations to the Cabinet in respect of matters relating to the fiscal policy of the Government.
(1) The Committee shall consist of the following members:
(a)(a)thethePrime PrimeMinister Ministeras asChairman; Chairman;
(b)(b)thetheDeputy DeputyPrime PrimeMinister; Minister;
(c)(c)thethe Ministercharged Minister chargedwith with the theresponsibility responsibility for finance;
(d)(d)thethe Ministercharged Minister chargedwith with the theresponsibility responsibility for for economy;
(e)(e)thetheChief ChiefSecretary Secretaryto tothetheGovernment; Government;
(f)(f)thetheSecretary SecretaryGeneral Generalof of Treasury; Treasury;
(g)(g)thetheSecretary SecretaryGeneral Generalof ofthetheMinistry Ministryof ofEconomy; Economy;
(h)(h)thetheGovernor Governorof ofCentral CentralBank Bankof ofMalaysia; Malaysia;and and
(i)(i)notnot morethan more thantwo twoother otherpersons personswho who shall shall be appointed byby thetheCommittee Committeewhowhoshall shall be befrom from among among persons of standingand standing andexperience experiencein infiscal fiscalor orpublic publicfinance. finance.
(2) The head of division in charge of fiscal policy affairs in the Treasury shall be the secretary to the Committee.
(3) The Chairman may invite any person to attend the meeting of the the Committee Committeefor forthethepurpose purpose of of obtaining obtaining views views on on any any matter matter underunder discussion. discussion.
(4) The Committee may determine its own procedure.
The Committee shall have duties and responsibilities to—
(a) oversee the fiscal matters, debt and liabilities, and fiscal risks;
(b) deliberate and propose policies to the Government towards achieving the fiscal objectives as specified in section 8 of this Act; and
(c) fulfil its fiduciary duty to ensure the conduct of fiscal policy is consistent with the principles of responsible fiscal management fiscal management asasspecified specifiedin insubsection subsection 6(2)6(2) of of thisthis Act.Act.
Subcommittee
(1) The
(1) The Committee maymayestablish establisha a subcommittee subcommittee to to assess the assess fiscal the risk, fiscal debt risk, andand debt other liabilities other liabilitiesexposure exposuretotothe the Government.
(2) This subcommittee shall report and make recommendations to the Committee.
(3) The Committee shall determine the membership of this subcommittee.
(4) The subcommittee may determine its own procedure.
(5) The subcommittee shall be subject to, and act in accordance with any directions given to the subcommittee by the Committee.
Part VI — Reporting
Division 1 — Annual budget documents
(1) The Minister shall, in respect of every financial year, lay before the House of Representatives the economic outlook report together with the statement of the estimated receipts and expenditure for that year.
(2) The economic economic outlook outlookreport reportshall contain shall containformation information thethe on current economic current performance economic performanceand andeconomic economicforecast forecastconsistent consistent with the fiscal objectives and shall include the macroeconomic forecasts for that financial year, setting out actual, estimated and projected values of the economic indicators, consisting of—
(a) gross domestic product and its components;
(b) inflation;
(c) labour market; and
(d) other relevant economic indicators.
(1) The Minister shall, in respect of every financial year, lay before the House of Representatives the fiscal outlook report together with the statement of the estimated receipts and expenditure for that year.
(2) The fiscal outlook report shall contain the following information:
(a) total revenue;
(b) total expenditure;
(c) the fiscal balance;
(d) the level of total debt and other liabilities;
(e) the consolidated public sector fiscal position;
(f) the Medium Term Fiscal Framework;
(g) any fiscal adjustment plan referred to under Part IV where applicable; and
(h) other relevant fiscal indicators.
(3) The fiscal outlook report shall contain the performance and strategy of the Government to achieve the fiscal objectives for each financial year and for the Medium Term Fiscal Framework period.
The Minister shall, in respect of the statement of estimated receipt under Clause (1) of Article 99 of the Federal Constitution, provide information on the actual revenue collection for the preceding financial year, revised revenue estimates for the current financial year, revenue estimates for the following financial year and information on tax and non-tax revenue items.
(1)
(1) The Minister shall, The Minister shall, inin respect respectof ofthethe statement statement of of estimated expenditure under Clause (1) of Article estimated expenditure under Clause (1) of Article 99 of the Federal 99 of the Federal Constitution, Constitution, provide provide information on information the xpenditure on the estimates of expenditure the estimates of the Government. Government.
(2) The expenditure estimates shall contain the following information:
(a) programmes and activities for operating expenditure;
(b) programmes and projects for development expenditure;
(c) programmes performance; and
(d) other relevant information relating to expenditure estimates.
Division 2 — Mid-year expenditure performance report, fiscal risk
(1) The Minister shall cause to be published a mid-year expenditure performance report not later than 30 September in respect of each financial year.
(2) The mid-year expenditure performance report shall contain the following information:
(a) actual expenditure against expenditure estimates;
(b) supplementary expenditure and excess expenditure under Article 101 of the Federal Constitution;
(c) the use use of of the theContingencies ContingenciesFund Fundunder Article under 103103 Article of thethe of Federal FederalConstitution Constitutionand and Contingencies Contingencies Reserve under section 6 of the Development Funds Act 1966;
(d) progress on the implementation of budget initiatives or measures of the Government in respect of that financial year; and
(e) other relevant information relating to mid-year expenditure performance report.
(3) The mid-year expenditure performance report shall be used for the purpose of assessing the expenditure performance of the Government against the expenditure estimates for that financial year as set out in the expenditure estimates under section 35 of this Act.
(1) The Minister shall cause to be published an annual fiscal risk statement.
(2) The fiscal risk statement shall contain the following information:
(a) macroeconomic risks;
(b) level of financial guarantees;
(c) exposure to other liabilities;
(d) disclosure stated under section 22 of this Act;
(e) mitigation plan referred to in section 24 of this Act; and
(f) other relevant information relating to fiscal risk.
(3) The fiscal risk statement shall be used for the purpose of assessing the exposure to fiscal risk to the Government.
(1) The Minister shall cause to be published an annual tax expenditure statement.
(2) The tax expenditure statement shall contain the following information:
(a) actual tax expenditure and estimated tax expenditure;
(b) actual tax expenditures against the estimated tax expenditure;
(c) any changes in tax policies and tax legislation; and
(d) other relevant information relating to tax expenditure.
(3) The tax expenditure statement shall be used for the purpose of assessing revenue foregone arising from changes in the tax policy of the Government, including but not limited to exemption, remission, allowance, preferential tax rate, deferral or offset, that reduces tax obligation to achieve its intended objective.
FIRST SChEdULE
[Subsection 8(2)]
Fiscal Objectives and Quantified Values
Quantified Fiscal Objectives Quantified Values Values
Annual development Annual development expenditure expenditureincurred incurredas asa ≥ 3% apercentage percentageofofgross grossdomestic domesticproduct product
Fiscal balance as a percentage of gross domestic ≤ -3% product
Debt level as a percentage of gross domestic product ≤ 60%
Financial guarantee as a percentage of gross domestic ≤ 25% product
Public Public PublicFinance Finance Financeand and andFiscal Fiscal FiscalResponsibility Responsibility Responsibility
SS ECONdS S ECONd ChEdULE ChEdULE
[Sections [Sections4 4and and17] 17]
Borrowing Borrowingand andDebt DebtLegislations Legislations
1.1. Treasury TreasuryBills Bills(Local) (Local)Act 1946[Act [Act188] 188]
2.2. Loan Loan(Local) (Local)Act
3.3. External ExternalLoans LoansAct 1963[Act [Act403] 403]
4.4. Loans Loans(Islamic (IslamicDevelopment DevelopmentBank) Bank)Act 1977[Act [Act187] 187]
5.5. Government GovernmentFunding FundingAct 1983[Act [Act275] 275]
EXPLANATORY EXPLANATORYSTATEMENT STATEMENT
This ThisBill Bill(“the (“theproposed proposedAct”) Act”)seeks seekstotoprovide provideforforthe theresponsibilities, responsibilities, accountability, accountability,governance governanceand andtransparency transparencyofofthetheGovernment Governmentin,in,managing managing the thepublic publicfinances financesandandfiscal fiscalrisk riskspecifically specificallyininrelation relationtotorevenue, revenue, expenditure, expenditure,borrowing borrowingand anddebt; debt;the thereporting reportingofofannual annualbudget budgetdocuments documents and andpublication publicationofofother otherdocuments; documents;and andtotomake makeprovisions provisionsfor forother othermatters matters connectedtherewith. connected therewith.
PP ARTI I ART
2.2. Part PartI Iofofthe theproposed proposedAct Actdeals dealswith withpreliminary preliminarymatters. matters.
3.3. Clause Clause1 1contains containsthetheshort shorttitle titleand andseeks seekstotoempower empowerthe theMinister Minister totoappoint appointa adate datefor for the thecommencement commencementofofthe theproposed proposedAct Actincluding includingthethe power powertotoappoint appointdifferent differentdates datesforforthethecoming cominginto intooperation operationofofdifferent different parts partsororprovisions provisionsofofthe theproposed proposedAct.Act.
4.4. Clause Clause2 2seeks seekstotoprovide providefor for the theapplication applicationofofthe theproposed proposedAct Acttoto the theGovernment GovernmentandandGovernment Governmententities. entities.
5.Hakcipta 5. Clause Clause Pencetak 3 3Hseeks seekstotoprovide providethat thathe theproposed proposedAct Actshallshallbeberead readtogether together with with other PERCETAKAN otherNASIONAL elevant relevant written written MALAYSIA laws BERHADlawsand and the theprovisions provisionsofofthe theproposed proposedAct Actshall shall be be inin addition addition to,to, and and notnot inin derogation derogation of, of, thethe provisions provisions of of other other elevant relevant Semua Hak Terpelihara. Tiada mana-mana bahagian jua daripada penerbitan ini boleh diterbitkan semula atau disimpan di dalam bentuk yang boleh diperolehi semula atau disiarkan dalam sebarang bentuk dengan apa jua cara elektronik, mekanikal, fotokopi, rakaman dan/ written written atau laws. sebaliknyalaws.mendapat izin daripada Percetakan Nasional Malaysia Berhad (Pencetak kepada Kerajaan Malaysia yang tanpa dilantik).
6.6. Clause Clause 4 4contains containsthe DICETAK OLEH thedefinitions definitionsofofcertain certainwords wordsand andexpressions expressionsused used ininthe the KUALA proposed proposed Act. Act. PERCETAKAN NASIONAL MALAYSIA BERHAD, LUMPUR BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA WJW23/1340 29-12-2023
Cite this legislation
- Official citation
- Act 850
- Source
- lom.agc.gov.my
- Data synced
- Licence
- MY-CopyrightAct1987-s3-official-text-exclusion ↗
Public Finance And Fiscal Responsibility Act 2023 [Act 850] (lom.agc.gov.my, MY-CopyrightAct1987-s3-official-text-exclusion). Retrieved via LawPlayer, https://lawplayer.com/my/act/act-850
This text is synced from lom.agc.gov.my. In case of any discrepancy, the authoritative text prevails.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).