Govt invites public to share inputs for Budget 2019

PUTRAJAYA: The government, which is establishing the Public Finance Committee (PFC) and Tax Reform Committee (TRC) to look into measures pertaining to the country's finances, is inviting the public along with various stakeholders to share their inputs for the upcoming Budget 2019.
Finance Minister Lim Guan Eng said in a statement that the PFC, which he will be chairing, will outline the government's medium-term fiscal plans. It will also be a platform to balance out the needs for fiscal consolidation and the need for the government to spend in order to raise the living standards of the rakyat while contributing to future economic growth.
Lim will be joined by Economic Affairs Minister Datuk Seri Mohamed Azmin Ali and Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus.
The government will proceed with its fiscal consolidation agenda in a gradual and more sustainable manner without hurting economic growth and the well-being of the rakyat.
Meanwhile, the TRC will assess the taxation system holistically to make it more efficient, neutral and progressive without burdening the rakyat while promoting the long-term productivity of the economy.
"The committee will study measures to halt the decline by, among others, minimising tax leakages and tax evasion. To augment these measures, the federal government would monetise some of its holdings in non-critical, non-strategic companies in an orderly fashion while engaging in planned and scheduled public auction of state land," he said.
"Previously, these land assets were often sold at steep discounts to politically-connected entities under opaque arrangements, which had deprived the federal government of additional revenue," he added.
Having chaired the first focus group meeting yesterday, Lim said the discussion during the session was on ways to improve public finances and strengthening the federal government's fiscal position by diversifying its revenue sources, optimising its expenditure and rationalising its RM1.087 trillion debt and liabilities, which rose spectacularly after years of imprudent and opaque management of government finances.
"Despite various legacy challenges, the federal government is steadfast in lowering its fiscal deficit to 2.8% of GDP this year," he said.
From a macroeconomic perspective, the government will ensure that the domestic environment is stable to support further growth and will continue to monitor global developments.
However just like other emerging markets, Lim said the performance of the domestic capital market as well as the strength of the ringgit are affected by global events as evidenced by the rise in sentiment among various economies after the US and Mexico reached a trade deal—following which the FBM KLCI rose 0.8% or 15.3 points yesterday.
Noting that the FBM KLCI has risen 1.7% from year-to-date, he said the Malaysian capital market and the value of the ringgit would rise If the US and China could agree to resolve their trade disputes.
Following the 2019 Budget consultation held on July 12, 2018, the Finance Ministry is further engaging with the relevant stakeholders to solicit inputs for the 2019 Budget, which will be tabled in Parliament on November 2, 2018.
In line with that, a series of focus group meetings have been scheduled from August to September 2018 to gather views and recommendations on specific issues including on domestic workforce, quality of education system, sustainable development and living costs among the urban poor.
Industry players, professional bodies, non-government organisations and government agencies have been invited to the discussions along with the public.
The public could participate in the budget process by contributing ideas and suggestions through a dedicated website at belanjawan2019.treasury.gov.my, which will take in suggestions beginning August 28 until September 30, 2018.
Alternatively, views could also be shared on social media platforms such as Facebook, Instagram and Twitter by using the hashtag #belanjawan2019.