Various Measures To Improve Revenue Are Being Implemented -- MOF

KUALA LUMPUR, Feb 23 (Bernama) -- The government has and is implementing various revenue strengthening measures including revising tax rates, broadening the revenue base, improving tax administration and reducing revenue leakage through digitalisation initiatives, according to the Ministry of Finance (MoF).

The MoF said the government has also implemented several measures to increase spending efficiency through targeted fuel subsidies to reduce leakage, restructuring public spending and improving transparency in government procurement through the enactment of the Government Procurement Act which can contribute to better spending efficiency.

“In an effort to control risks from contingent liabilities and increasing financial commitments, the government has implemented several key measures, including setting a financial guarantee exposure limit of 25 per cent of gross domestic product through Act 850.

“The MoF is also reviewing the implementation of mega projects that will increase the government's financial commitment,” the ministry said in a reply posted on the parliament website today to a question from Senator Datuk Seri Dr Mujahid Yusof (PH-Amanah) who wanted to know the government's strategy for managing medium-term fiscal commitments, including contingent liabilities and obligations related to government-linked companies and special-purpose companies.

The MoF said any new project implementation with significant financial requirements will be based on the government's financial capacity in the medium term.

The ministry added that other measures include rationalising the implementation of projects through public-private partnerships by focusing on a user-based payment model to reduce direct financial commitments from the government in line with the goals under the 13th Malaysia Plan.

“The government will also improve the management and governance of government-linked companies through the proposal for relevant legislation aimed at strengthening corporate governance, increasing accountability and optimising the operations of companies in line with the mandate of their establishment,” the MoF said.

-- BERNAMA