Section 6
Formulation of fiscal policy, etc.
of Public Finance and Fiscal Responsibility Act 2023
The formulation of fiscal policy shall be based on but not limited to the following general principles:
(a)
accountability, which means the accountability of the
Government in carrying out its responsibilities to manage fiscal policies;
(b)
responsibility, which means the responsible management of Government resources and management of fiscal risks to maintain fiscal and environmental sustainability;
(c)
transparency, which means timely publication of financial and non-financial information relating to the management of fiscal policy so as to allow the effective assessment on the conduct of fiscal policy and the state of the public finances; and
(d)
intergenerational equity, which means the management of fiscal policy shall consider the impact on the well-being of the current and future generations.
(2)
To achieve the fiscal policy objectives in section 5, the Government’s fiscal policy shall be based on the principles of responsible fiscal management as follows:
(a)
ensuring macroeconomic stability;
(b)
achieving and maintaining a sustainable fiscal balance;
(c)
achieving and maintaining a prudent debt level; and
(d)
ensuring effective fiscal risk management.