The proposed Fiscal Responsibility Act will send a strong signal for responsible public finance stewardship: Rafizi

KUALA LUMPUR: The proposed Fiscal Responsibility Act (FRA) will send a strong signal to the market and provide a good governance framework for public finances, Economy Minister Rafizi Ramli said (Picture).

There is a need to legislate how the country would spend money, which is why the proposed FRA is expected to be presented to Parliament in the near future, he added.

“The plan and the idea for the FRA was there and people were talking about it, everyone accepting that (that) governance shouldn’t just be talked about, it should be framed.

“This is an essential part of what we need to do to strengthen the economy,” he told the media after delivering a keynote address at the Association of Chartered Certified Accountants (ACCA) Stakeholder Recognition Reception here on Friday night.

The government’s focus today is mainly on three areas, namely strengthening the country’s fiscal position, increasing revenues and structuring the economy, according to Rafizi.

“Basically, our problems in the past have been how we spend our money. With FRA, it will harmonize and (infuse) the discipline to lead the entire government machinery to the end,” he added.

Rafizi noted that the Treasury Department is responsible for submitting the FRA, while his ministry, which manages development spending, will provide input on the proposed legislation.

On February 24, during the presentation of the revised 2023 budget, Prime Minister Datuk Seri Anwar Ibrahim reiterated that the government will present the FRA this year to ensure more transparency and good governance of the economy. –Bernama