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Section 20

of Public Finance and Fiscal Responsibility Act 2023

ActIn forceProvision 20 of 38

Section 20

(1)

The Minister is responsible for formulating the fiscal risk management policy of the Government with the aim to minimise and mitigate the risk exposure of the Government consistent with the principle of responsible fiscal management under subsection 6(2) of this Act.

(2)

Fiscal risk means any transactions or circumstances that bind or may bind the Government to financial liability, including but not limited to—

(a)

financial commitment to the Government arising from any financial guarantee, public-private partnership and

Government entities;

(b)

changes in any economic indicator that may result in additional financial commitment to the Government;

(c)

the impact of natural disasters, climate change, pandemics and geopolitical situations that may result in additional financial commitment to the Government; and

(d)

any other circumstances that can potentially expose the Government to a financial commitment.

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