KUALA LUMPUR: The proposed Fiscal Responsibility Act (FRA) will send a strong signal to the market and put in place a good governance framework for public finances, Economy Minister Rafizi Ramli said.
He said there was a need to regulate how the country would spend money through legislation and the proposed FRA would be tabled in the Parliament in the near future.
"The plan and idea for the FRA have been there and people have been talking about it, everyone accepts (that) governance should not just be talked about but put into a framework.
"It is part and parcel of what we need to do to strengthen the economy," he told the media after delivering a keynote address at the Association of Chartered Certified Accountants (ACCA) Stakeholders' Appreciation Reception here on Friday night.
Rafizi said the government's focus would be based on three areas - strengthening the country's fiscal position, increasing revenue and adding to structure the economy.
"Our problems in the past are basically how we spend our money. With FRA, it will harmonise and (instil) the discipline to guide the whole government machinery all the way down," he added.
Rafizi said the Finance Ministry was responsible for tabling the FRA while his ministry, which manages the development spending, would provide input on the proposed bill.
On Feb 24, Prime Minister Datuk Seri Anwar Ibrahim, during the tabling of the revised Budget 2023, reaffirmed that the government will be presenting the FRA this year to ensure greater transparency and accountable management of the economy. -- Bernama