KUALA LUMPUR: An economist has called for the establishment of an independent fiscal institute in Malaysia with a mandate to perform real-time costing and forecasting to ascertain the macro-fiscal consequences of the budget bill.
Geoffrey Williams, professor and dean of the Institute of Postgraduate Studies, Malaysia University of Science and Technology, said the institution would help promote sustainable public finances and advise the government on fiscal policy matters.
When the government presents the budget, the independent fiscal institution will be able to provide its independent views on the bill, including the accuracy of forecasts under the budget, from revenue and growth to debt, he said.
“At the moment, in Malaysia, we have (the review) through the Auditor-General (but only) after we have spent the budget...What we need is to have this before the budget is spent.
“(For example), you will have a forecast on income tax and check whether it’s usable or not, a forecast on spending and its impact in terms of creating jobs, generating money, and creating investment...and so on.
“This (the review) has to happen before it (the allocation) is spent and not after. Then you will know whether the budget is sustainable, efficient, and reasonable,” he told Bernama on the sidelines of the Business Foresight Forum 2022 organised by the Securities Industry Development Corporation here, today.
There are around 50 such institutions worldwide currently.
Williams said the independent fiscal institute should consist of independent economists selected and appointed by the Parliament.
“They will report directly to the Parliament and should have a Secretariat to help with data collection and carry out analyses,” he added. - Bernama
