What does the Public Expenditure Review aim to fix in spending?

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The Public Expenditure Review Aims to Enhance Efficiency in Government Spending

The government is currently developing a Public Expenditure Review as part of broader fiscal strategies to bolster the nation's revenue and manage government expenditures more efficiently. This initiative is designed to reinforce the country's financial standing, ensuring that government debts remain sustainable over the medium and long term. These efforts are aligned with the 12th Malaysia Plan, which outlines a three-to-five-year period for fiscal consolidation.
Focus on Efficient Management of Government Expenditure

The Public Expenditure Review is being implemented with the explicit goal of ensuring efficient management of the government’s expenditure. While the specific areas or types of spending targeted for improvement are not detailed, the overall objective is to optimize how public funds are utilized. This review is a key component of the government's broader strategy to strengthen its financial position.
Strengthening Fiscal Position and Debt Sustainability

The implementation of the Public Expenditure Review, alongside the development of a Medium-Term Revenue Strategy (MTRS), is intended to enhance the country’s revenue streams and improve fiscal discipline. These measures are projected to contribute to the sustainability of government debts, which stood at RM979.8 billion, or 63.4 per cent of GDP, at the end of December 2021. The statutory debt ratio was 59.7 per cent of GDP during the same period.
Broader Fiscal Consolidation Efforts

These reviews are part of a larger framework that includes the Medium-Term Fiscal Framework, which serves as a guide for fiscal consolidation strategies. Furthermore, the anticipated enactment of the Fiscal Responsibility Act is expected to enhance governance and transparency in public financial management, reinforcing fiscal discipline across government operations.

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What does the Public Expenditure Review aim to fix in spending?

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