Fiscal Deficit Calculated Under International Standards -- Amir Hamzah
KUALA LUMPUR, Feb 4 (Bernama) -- The government’s fiscal deficit calculation should not be questioned as it is reported in line with international standards recognised by global credit rating agencies and multilateral bodies, Finance Minister II Datuk Seri Amir Hamzah Azizan said.
He said the deficit reporting follows the Government Finance Statistics Manual, a framework also adopted by other countries.
“The Auditor-General has also issued an opinion that the Federal Government’s Financial Statements present a true and fair view,” he said.
“The Federal Government’s financial accounting system, which is based on a cash basis, is not something unusual,” he added when winding up the debate on the motion of thanks for the royal address in the Dewan Rakyat today.
Amir Hamzah said cash-based accounting is an internationally accepted standard and is used by advanced economies as well as 11 developing countries, including Singapore, India, Germany, the Netherlands and Norway.
Earlier, Datuk Seri Rafizi Ramli (PH-Pandan) questioned the validity of the fiscal reforms claimed by the MADANI government.
Amir Hamzah said fiscal reforms under the MADANI administration had been strengthened through the Public Finance and Fiscal Responsibility Act 2023.
He said the law enhances fiscal transparency and sets clear medium-term fiscal targets to ensure public finance sustainability, preserve macroeconomic stability and safeguard public welfare.
-- BERNAMA