THE government has tabled a bill to allow it to undertake temporary measures relating to government financing to mitigate the impact of the Covid-19 outbreak on the economy.

The Temporary Measures for Government Financing (Coronavirus Disease 2019) Bill 2020 was tabled for first reading by Deputy Finance Minister Mohd Shahar Abdullah (Paya Besar-BN) in Dewan Rakyat this morning.

The bill, which has 8 clauses, primarily seeks to increase the ceiling amount of borrowings raised by the government from the current 55% to 60% of gross domestic product (GDP).

The ceiling amount of government borrowings is specified under subsection 3(1) of the Loan (Local) Act.

The total amount of money that may be received comes under subsection 3(1) of the Government Funding Act and Government Funding (Statutory Ceiling of Monies Received) Order.

The bill also proposes to approve an amount of RM45 billion announced for the various economic stimulus packages and economic recovery plans.

Beyond that, the bill also proposes to set up the Covid-19 Fund under Clause 4.

According to the proposed bill, the fund shall only be used for programmes under the economic stimulus packages and economic recovery plans. 

However, the finance minister will be given the power to limit or suspend any amount allocated for the programmes under the economic stimulus packages and recovery plans. 

Clause 5 also allows the minister to redirect any surplus funds from Covid-19 programmes.

Under Clause 7, the government is required to prepare a statement of receipts and expenditure for the Covid-19 fund.

In one of the accompanying schedules under Subsection 5(1), the total amount of stimulus packages and economic recovery plans is RM45 billion. 

The proposed period of the law is from the date of gazette until December 31, 2022.

The second reading (debate) for this bill is set for next week. – August 6, 2020.