KUALA LUMPUR: The government has been urged to expedite the implementation of the Fiscal Responsibility Act as one of the fiscal reforms, Member of Parliament for Kangar Noor Amin Ahmad said.
He said with the operating expenditure reaching almost 100 per cent of tax collection, the government cannot avoid from continuing to raise debt to accommodate the development expenditure.
“The Ministry of Finance (MoF) has proposed to table the Fiscal Responsibility Bill, so I hope the MoF would not delay and hold discussions quickly in order to table the bill in the Dewan Rakyat,” he told the media in Parliament today.
Noor Amin also asked the government to raise the country’s debt ceiling to 70 per cent from 65 per cent at present as it needs to inject additional stimulus by generating new debts as the economic situation is still sluggish.
He said the MoF has projected that the debt ratio to increase to 66 per cent of gross domestic product (GDP) by year-end, a 1.0 per cent increase from the debt statutory limit approved through an amendment made in 2020 to address the impact of Covid-19 under the Loan (Local) Act 1959 and Government Funding Act 1983.
“The basis of my concern is related to a written reply where it was stated that 43.4 per cent of the government’s debt will mature in five years.
He said the government’s debt ratio projection of 66 per cent this year is rather optimistic with the PRIHATIN, PENJANA and PEMERKASA expenditure at the 65 per cent, 57.3 per cent dan 38.2 per cent levels, respectively.
“Taking into account the total Budget 2022 allocation of RM322.1 billion as a benchmark and total revenue collection of about RM234.0 billion, this means that the deficit expenditure is around RM88 billion,” he added.
The introduction of new taxes at a time when the country has not yet fully recovered from the pandemic would further burden the people who were still reeling from the impact of rising prices of goods, he said, adding that, “It is important that the government answers this issue immediately.” — Bernama