Govt committed to continue fiscal reforms agenda through Fiscal Responsibility Act - MoF

In the 2022 Fiscal Outlook and Federal Government Revenue Estimates report released today, the Ministry of Finance (MoF) said the formulation of the Fiscal Responsibility Act (FRA) reflects its commitment and strategy for sound fiscal management.

"This reform initiative will further enhance the credibility of its fiscal policy conduct towards achieving long-term public finance sustainability and macroeconomic stability.

"The FRA will also provide a robust framework for the government to improve transparency and accountability in fiscal management," it said.

The MoF has since published a public consultation paper to obtain inputs and feedback on the formulation of the FRA.

The consultation paper includes the rationale, issues related to fiscal management and the proposed framework for the FRA.

The consultation paper had been made available to the public on the MoF Budget 2022 portal from Sept 3-15, 2021.

MoF said it will continue to engage with the International Monetary Fund (IMF) for expert advice and technical assistance in formulating the FRA.

At the same time, MoF will continue to consult relevant stakeholders for views and feedback in drafting the FRA.

"This reform initiative will have a positive impact on credit rating assessment, especially on the governance," it added.

The draft bill of the FRA will then be introduced to the Cabinet for approval before tabling in Parliament.