KUALA LUMPUR, Nov 2 — The Dewan Rakyat today approved the Supply Bill 2024 at the policy stage via a voice vote.
Dewan Rakyat Speaker Tan Sri Johari Abdul called for the vote after Finance Minister Datuk Seri Anwar Ibrahim, who is also the prime minister, finished his winding-up speech for the Bill.
Johari later announced that the Bill was approved, after a clear majority was heard in the Lower House.
On October 13, Anwar tabled Budget 2024, the country’s largest ever federal spending plan with a proposed expenditure of RM393.8 billion.
In his winding-up speech, Anwar clarified that should the government be unable to fulfil its fiscal deficit projection, he will have no choice but to re-table the Supply Bill 2024 for the MPs to object, support or criticise.
“Beluran (Bersatu’s Beluran MP Datuk Seri Ronald Kiandee) raised the matter of whether we will be able to meet the fiscal deficit (projection). I want to clarify, if we can reduce it from 5.6 per cent to 4.3 per cent, I think we can manage it.
“And some steps that could be taken include more prudent spending, and I have also asked the chief secretary to the government to take steps to ask the departments to ensure that their spending is more orderly and sparing,” he said
Secondly, he also said that the targeted subsidies announced recently, for example, the Capital Gains Tax and the High-Value Good Tax will contribute to the projection.
“That will create additional revenue for the government at an estimated value of RM4 billion.
“So that fiscal deficit (projection) is achievable.
“Then what is our guarantee to you, Yang Berhormat? We set a fiscal deficit target of 5 per cent, then 4.3 per cent; if it is not achieved, for instance, (then) I have no choice.
“I will have to re-table it for it to be objected to or to be supported or criticised by all of you (MPs). That means that this is the beginning (of reforms) that the government cannot simply make projections... that is the meaning of fiscal responsibility,” Anwar said.
On October 11, the Public Finance and Fiscal Responsibility Act was passed in Parliament.
The government said that the Act was introduced to ensure the sustainability of public finances, preserve macroeconomic stability, and protect the well-being of the people.
It also said that the Act will ensure that the finance minister formulates a Medium-Term Fiscal Framework to guide fiscal planning, strategies and priorities over a three- to five-year period, while, at the same time, outlining the fiscal objectives that the government needs to achieve.
On a separate note, Anwar clarified a “confusion” raised by PAS’ Pasir Mas MP Ahmad Fadhli Shaari, and asked MPs to read the Budget Estimation Book.
“Because Pasir Mas said in 2023, the development expenditure was RM97 billion, and 2024 is RM90 billion.
“This means that it is less now. If you read it (Budget Estimation Book) you will know that in 2023, it was RM97 billion because of the RM13 billion 1MDB debt paid, so the actual figure was RM84 billion.
“So next time, read first. So, in comparison, 2023 and 2024, the development expenditure for 2023 was RM84 billion and 2024 is RM90 billion. Is there any 1MDB payment this year, no. The 1MDB payments follow a schedule. In 2023, it was RM13 billion, the next payment is in 2036, if I am not mistaken, which is a long time to go,” he said.
