The Ministry of Finance of Malaysia submitted the Bill of Interim Financial Measures, which proposed to raise the public debt ceiling from the current 60 to 65 percent of GDP, to the National Assembly on September 28.
Malaysian Finance Minister Zafrul Aziz said that by raising the public debt ceiling, it would provide more fiscal space to support the reopening of the economy and ensure a stable recovery.
The Minister also affirmed that raising the public debt ceiling is still in line with the government's commitment to fiscal consolidation measures in the medium term. Along with that, the proposed Fiscal Accountability Act (FRA) will also help improve governance, transparency and accountability in national fiscal management.
He stressed that the government's current priority is to protect people's lives and ensure that the country's economic growth prospects remain strong in the medium and long term. According to him, these priorities are in line with the core targets of the 12th Malaysia Plan (12th MP) and the Commonwealth Vision 2030, and are based on principles of financial management.
The official also said that, to ensure there is enough financial space to implement development programmes under the 12MP framework, the government is committed to implementing fiscal consolidation measures based on the medium-term fiscal framework, including a medium-term budget collection strategy to expand tax revenue and increase debt solvency./.