Kuala lumpur: The implementation of fiscal consolidation measures is expected to reduce the fiscal deficit to below three per cent and ensure that the debt level does not exceed 60 per cent of the country’s estimated gross domestic product (GDP).

According to BERNAMA News Agency, the 13th Malaysia Plan (13MP) main document themed ‘Melakar Semula Pembangunan’, outlines the adoption of good governance practices centred on accountability, transparency, and efficiency under the Public Finance and Fiscal Responsibility Act 2023 (Act 850) in public financial management.

Government revenue collection will be improved through the implementation of an electronic invoice system in stages until 2026 to increase the digitalisation of tax collection. Additionally, the expansion of the tax revenue base under the medium-term revenue strategy (MTRS), such as the implementation of the global minimum tax (GMT) and periodic review of the sales and service tax (SST), aims to enable the provision of more facilities and assistance for the well-being of the people.

The document containing the five-year plan includes measures to improve spending efficiency through more targeted subsidies and assistance, as well as more prudent debt management. Fiscal management efficiency will also be enhanced through project management reforms that involve more systematic monitoring and evaluation.

Cost control mechanisms will be improved by considering key elements in cost calculations, including life cycle costs. The implementation of public-private partnership (PPP) projects will be rationalised by focusing on a user-based payment model to provide service options to the people, as stated in the document issued by the Ministry of Economy.