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KUALA LUMPUR, Oct 5 ― Expanding the tax base and strengthening the government’s spending management are among proposals under fiscal reform necessary to lay a stronger foundation for more sustainable and inclusive growth.
In the book, Shared Prosperity Vision 2030 (WKB2030) released today, Economic Affairs Ministry (MEA) also proposed new initiatives to increase revenue and improve tax compliance as well as improving the tax efficiency.
In addition, the government has also recommended for the government’s expenditure management to be more transparent, especially in determining the need for megaprojects based on a cost-benefit analysis.
“Introducing a mechanism for managing and monitoring budgets under Parliament that acts as the budget arbitrator for the government and also sets the threshold for operating expenditure,” it said.
It also said the procurement process for all supplies and services including the implementation of open tenders would also need to be strengthened.
“Improving the public sector debt management system to be more responsible and accountable.'
The ministry also said a sustainable fiscal position is important because it is defined as the ability to maintain the government's financial position at a reliable level without compromising the ability to manage the government’s liabilities and commitments in the long run.
“Efficient fiscal management is to determine the country's rating by international bodies in enhancing the confidence of investors and the market.” ― Bernama