PETALING JAYA: The government has been urged to review the targets it has set under the proposed Public Finance and Fiscal Responsibility Act to better manage its operating expenditure.
When tabling the PFFR Bill for first reading on Oct 9, deputy finance minister Ahmad Maslan said the government would be setting four targets under the new legislation. The bill was passed two days later. He pointed out that day-to-day spending determines how much revenue and taxes the government needs as well as how much it must borrow.
He said keeping the annual development expenditure at 3% of GDP when the historical average is 4% indicates that there has been a contraction of government investment in development.
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