Ministry of Finance in its efforts to improve the annual budget preparation process will be publishing for the first time a Pre-Budget Statement (PBS) for Budget 2022.
The ministry has said this will be in line with international best practices, whereby a PBS is published to enhance the transparency of the budget process in formulating the annual budget, as well as increase public confidence – particularly among investors – in the country’s fiscal management.
Via the PBS, the public will be able to track specific metrics such as:
- The economic outlook based on global economic scenario, performance review of the Gross Domestic Product and macroeconomic outlook for 2022 as well as fiscal targets for 2021/2022;
- The tax revenue performance status and tax measures announced under Budget 2021 and stimulus packages in 2021. The PBS document also covers the management of revenue leakages, Malaysia’s international commitments as well as strategies to increase tax revenue and strengthen the tax system; and
- The public expenditure status for 2021 and factors in optimising and controlling expenditure.
The PBS will also provide a preliminary overview on the direction, approach and expected benefits of Budget 2022, which will be crafted based on the following objectives:
- Protecting and driving recovery of lives and livelihood: Budget 2022 will drive the national recovery process to ensure that the nation successfully exits from the COVID-19 crisis, as well as continue the post-crisis recovery agenda to help lives, livelihoods and badly-affected economic sectors. Efforts to help vulnerable groups and generate new job opportunities will continue to be prioritised;
- Rebuilding national resilience: Budget 2022 will emphasise on rebuilding the resilience and capacity of the nation’s public health system, enhancing digital and technological infrastructure, especially within the education sector, and facilitating the nation’s transition to high productivity industrial sectors based on automated technology and high skills; and
- Catalysing reforms: Budget 2022 will ensure that reform measures are implemented while focusing on achieving the Sustainable Development Goals, the Twelfth Malaysia Plan and the Shared Prosperity Vision 2030.
With the new government stating that opposition parties will be consulted on areas that concern the people, this will be a good start in formulating the Budget that will impact every person in the country. Lets just see if the feedbacks will be constructively addressed and applied during the actual tabling in October.
