PETALING JAYA: The upcoming Budget 2022 will focus on protecting and driving the recovery of lives and livelihoods of Malaysians, rebuilding resilience of the economy and catalysing socio-economic reforms.

       In its inaugural pre-budget statement (PBS), the Finance Ministry said Budget 2022 will prioritise continuing programmes to support and spur economic recovery in line with the gradual reopening of the economic sectors through the National Recovery Plan.

       It will also address potential lingering and longer-term effects of the pandemic on public health and economic structure.

       Another theme of Budget 2022 will be to ensure the continuity in policy and assistance provided to the people and businesses.

       In addition, the Finance Ministry said Budget 2022 will catalyse structural reforms in the post-pandemic period to boost the nation’s competitiveness, apart from ensuring greater sustainability and inclusiveness in its development agenda.

       “Budget 2022 will also focus on efforts to help the vulnerable and disadvantaged segments of society, women, indigenous people and the disabled to ensure no one is left behind in the nation’s developmental and recovery agenda.

       “In addition, efforts to protect and generate new job opportunities will continue to be a priority,” the Finance Ministry said in the PBS yesterday.

       Beginning this year, the PBS will be published ahead of the tabling of the budget to increase transparency in annual budget preparation.

       The inaugural move is in line with the proposed framework in enacting the Fiscal Responsibility Act, which aims to improve the governance, transparency and accountability of the country’s fiscal management.

       “Therefore, the public is able to have a preliminary view of the direction, approach taken and expected initiatives that will potentially be in Budget 2022.

       “In addition, this effort will enhance Malaysia’s position in the Open Budget Index, an international report published by the International Budget Partnership (IBP).

       “Based on the IBP report for 2019, Malaysia recorded a relatively low score of 47 for budget transparency compared to regional countries such as the Philippines (76), Indonesia (70) and Thailand (61),” according to the Finance Ministry.

       The ministry said Budget 2022 will strive to ensure that no person or business is left behind in receiving the government’s assistance and support, especially those severely affected by the prolonged movement control order in 2021.

       “In addition, this Budget also serves as a catalyst towards the implementation of the 12th Malaysia Plan (12MP) that will drive economic growth, inclusiveness and sustainability in the medium term, based on the Sustainable Development Goals and the Shared Prosperity Vision (SPV) 2030,” it added.

       The Finance Ministry noted that the 12MP, which is scheduled to be tabled in the Parliament in September 2021, will be the first phase of the implementation of SPV 2030.

       In formulating the public expenditure strategy for Budget 2022, the Finance Ministry said three major factors are given greater focus.

       These are namely, providing for the immediate needs in overcoming the Covid-19 crisis, the fiscal constraints arising from the reduction in government revenue and increase in government debt and Budget 2022 as a catalyst in driving structural reforms in the medium term.

       Currently, the government is also considering measures to increase tax revenue through increased tax compliance.

       Among the measures under consideration are the implementation of the Special Voluntary Disclosure Programme for indirect taxes administered by the Royal Malaysian Customs Department.

       The government is also considering the introduction of a Tax Compliance Certificate as a pre-condition for tenderers to participate in government procurement, the implementation of the Tax Identification Number as well as reviewing tax treatment that is identified as having elements of revenue leakage or harmful practices.

       “The government will undertake various engagement and consultation sessions to obtain input and suggestions from various parties to ensure that the drafted Budget is comprehensive and inclusive in line with “Keluarga Malaysia” spirit.

       “It is the government’s hope that the publication of this PBS will assist in setting the expectation of the public of Budget 2022, which will be tabled at the Dewan Rakyat on Oct 29, 2021,” stated the Finance Ministry.