KUALA LUMPUR, Dec 14 — The Federal government revenue collection recorded an increase of 8.9 per cent to RM210.4 billion while total expenditure increased 4.9 per cent to RM307.6 billion up till November 2021, said Prime Minister Datuk Seri Ismail Sabri Yaakob.
He said the Fiscal Policy Committee (FPC) which met yesterday was of the view that the revision of the deficit for 2021 of 6.5 per cent of Gross Domestic Product (GDP) would be achieved and the Finance Ministry would continue to monitor this performance and development.
“Based on the outlook for a better economic recovery for 2022 as well as Budget 2022 measures, the fiscal deficit is targeted to be reduced to 6 per cent of GDP,” he said in a press statement after chairing the 3rd FPC meeting yesterday.
Also present at the meeting were Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed, Chief Secretary to the Government Tan Sri Mohd Zuki Ali, Treasury secretary-general Datuk Asri Hamidin @ Hamidon and Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus.
Ismail Sabri said institutional reform initiatives, especially the implementation of the Fiscal Responsibility Act (FRA), Medium Term Revenue Strategy (MTRS) and Public Expenditure Review (PER) were key policy measures in supporting this effort.
Fiscal Planning in the Medium Term, Fiscal Reform Initiatives
According to him, in the medium term, the government remains committed to the deficit target as outlined under the 12th Malaysia Plan (12MP) which is 3.5 per cent of GDP in 2025.
“Towards this end, the committee has examined several proposals that will improve the country’s financial position and fiscal sustainability once the economy returns to the growth trajectory before the Covid-19 pandemic hit the country,” he said.
Going forward, the sustainable recovery agenda will be aligned with the initiatives under the 12MP.
All these efforts are focused on the development of high technology, innovation and sustainability in sectors with high growth potential designed to catalyse an inclusive and competitive economy for the benefit of all in Keluarga Malaysia.
“Overall, efforts to help all in Keluarga Malaysia will continue while ensuring the sustainability of the government’s financial position.”