Report: Govt to continue consolidation efforts for fiscal sustainability

KUALA LUMPUR: The Government will continue with its consolidation efforts by reviewing all aspects of fiscal management including revenue enhancement, ongoing subsidy rationalisation, prudent government spending, increasing efficiency of the public sector and managing off-budget spending.
In the 2014/2015 Economic Report, the Ministry of Finance said in cognisant of the need to broaden the tax base and reduce dependence on oil revenue, the Government would implement the Goods and Services Tax (GST) on April 1, 2015.
"In this respect, the Price Control and Anti-Profiteering Act 2011 will be fully enforced and the Enforcement Division of the Ministry of Domestic Trade, Co-operative and Consumerism have been strengthened to monitor profiteering activities and ensure a smooth and orderly implementation of the GST next year," it said.
The report is issued in conjunction with the tabling of the 2015 Budget in Parliament today by Prime Minister Datuk Seri Najib Abdul Razak, who is also Finance Minister.
The ministry also said that the fuel subsidy rationalisation would be continued through a more targeted subsidy mechanism.
Meanwhile, the Government will ensure more prudent spending with priority on high-impact projects and focus on budget outcomes and efficiency through the full implementation of the outcome based budgeting by 2015.
Additionally, the ministry said accrual accounting would be adopted to reflect a more comprehensive and holistic management of government finance.
"The Government will continue to observe its self-imposed guidelines on debt management to ensure debt-to-Gross Domestic Product ratio does not exceed 55% while debt service charges are capped below the threshold of 15% of total revenue," it said. – Bernama