It is an effort to improve the annual budget preparation process and aimed at increasing public confidence, particularly among investors, in the country’s fiscal management
by ASILA JALIL / pic by MUHD AMIN NAHARUL
THE Ministry of Finance (MoF) has agreed to publish a Pre-Budget Statement (PBS) for Budget 2022, the first in the nation’s history, to enhance transparency in formulating the annual budget.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz (picture) said the PBS is an effort to improve the annual budget preparation process and is also aimed at increasing public confidence, particularly among investors, in the country’s fiscal management.
“MoF is confident that the publication of the PBS will provide more avenues for stakeholders to provide feedback and contribute towards formulating a budget that is well-aligned to the needs of the rakyat, as well as the country’s policies and national objectives,” he said in a statement yesterday.
He said the PBS will allow the public to track specific metrics such as the economic outlook based on the global economic scenario, performance review of GDP and macroeconomic outlook for 2022, as well as fiscal targets for 2021/2022.
The public will also be able to track the tax revenue performance status and tax measures announced under Budget 2021 and stimulus packages this year.
“The PBS document also covers the management of revenue leakages, Malaysia’s international commitments as well as strategies to increase tax revenue and strengthen the tax system and the public expenditure status for 2021 and factors in optimising and controlling expenditure,” he said.
He added that the PBS provides a preliminary overview on the direction, approach and expected benefits of the budget for next year.
Budget 2022 will be developed based on several objectives, mainly protecting and driving recovery of lives and livelihood as it will ensure the nation successfully exits from the Covid-19 crisis and continue the post-crisis recovery agenda to help those affected.
It will also emphasise on rebuilding the resilience and capacity of the nation’s public health system, as well as enhancing digital and technological infrastructure especially within the education sector.
Among other capacity rebuilding efforts include facilitating the nation’s transition to high productivity industrial sectors based on automated technology and high skills.
“Budget 2022 will ensure that reform measures are implemented, while focusing on achieving the Sustainable Development Goals, the 12th Malaysia Plan and the Shared Prosperity Vision 2030,” added Tengku Zafrul.
The government is expected to table Budget 2022 in Parliament in October.