THE Temporary Measures for Government Financing (Covid-19) 2020 Bill was tabled in the Dewan Rakyat for the second reading today for the application of a supplementary allocation of RM45 billion. 

The bill was tabled by Finance Minister Tengku Zafrul Tengku Abdul Aziz to enable the government to increase the statutory limit for the sum allocated under the Loan (Local) Act 1959 and the Government Funding Act 1983 to 60% of gross domestic product (GDP). 

“This increase in the statutory limit is a temporary measure and it will return to 55% of GDP in 2023,” Tengku Zafrul said when tabling the bill.

The bill will also enable the government to allow funds obtained under the Loan (Local) Act 1959 to be placed in the Covid-19 Fund.

It will also enable the funds to be used and allocated for programmes under the government’s economic stimulus packages.

Tengku Zafrul said his ministry will prepare the statement on receipts and expenditure accounted for in the Covid-19 Fund after the end of each financial year, and the statement will be published in the annual federal government financial statement. 

He said an effective fiscal policy is important to ensure the economy stays resilient and is able to provide countercyclical measures to address external shocks.

“As a responsible government, we have no choice. Maintaining the well-being of the people and economy is unavoidable. Thus, the government has quickly intervened to assist the people and prevent the economy from plunging into a more severe level,” he said.

Thus, the government has implemented the economic stimulus packages and economic recovery plans worth RM295 billion, or 20% of GDP, with a direct fiscal injection of RM45 billion, he added. – Bernama, August 18, 2020.