KUALA LUMPUR: The Public Finance and Fiscal Responsibility Bill 2023 is expected to increase the confidence of local and foreign investors, as well as boost foreign direct investment (FDI) into the country.
Senator Datuk Sivaraj Chandran said the bill, which has been passed by the Dewan Negara, would convince investors of the country’s financial management and the government’s efficiency in reducing leakages, as well as increasing the efficiency of the government and government agencies.
“This will encourage them to invest billions of ringgit without doubting the stability of their investment in the country,” he said during the second reading and debate session of the bill in the Dewan Negara yesterday.
Sivaraj said the components of the bill, such as public expenditure, loan and debt management, risk management and government guarantees, would ensure that the country’s economic management is efficient, transparent and on the right track.
The Public Finance and Fiscal Responsibility Bill 2023 aims to provide for responsibility, accountability, governance and transparency of the government in managing public finance and fiscal risk.
Earlier this year, Deputy Finance Minister I Datuk Seri Ahmad Maslan said the Fiscal Responsibility Act will include several components, including the government debt percentage limit not exceeding 65 per cent of the gross domestic product, as well as incurring debt service payments not exceeding 15 per cent of the annual budget of the federal government. – BERNAMA
