Section 26
of Public Finance and Fiscal Responsibility Act 2023
Section 26
The Government may deviate temporarily from the fiscal objectives referred to in section 8 upon the occurrence of a sudden and unpredictable event that may pose significant risks to human life, economy and fiscal position.
(2)
Prior to any deviation referred to in subsection (1), the Minister shall carry out an assessment to determine whether such event will cause a significant economic downturn, health crisis or affect the fiscal position of the Government.
(3)
The Minister shall table such assessment referred to in subsection (2) to the Cabinet for approval.
(4)
If the Cabinet is satisfied that such event will cause a significant economic downturn, health crisis or affect fiscal position of the Government, the Minister shall prepare and table a fiscal adjustment plan to the Cabinet for approval.
(5)
The fiscal adjustment plan shall consist of—
(a)
the reasons for the deviation from the fiscal objectives and its quantified values;
(b)
the measures to be taken to return to the fiscal objectives and its quantified values;
(c)
the expected period of time to be taken to return to the fiscal objectives and its quantified values; and
(d)
other relevant information relating to the fiscal adjustment plan.