00:04Given that context, what do we do for budget in terms of fiscal policy?
00:09So, we believe it's important that, as the government, we've announced a Kami Mandami,
00:16the reform of fiscal responsibility, and we should commit to remain on track to that.
00:21So, again, we reduced from 5.5% 2022 to 3.7% 2025.
00:30This year, we're projecting 3.6%.
00:32It's a slight slippage from our original budget to 3.5%, but still a reduction,
00:37and we're committed to try to target 3.3% next year in order for us to be on the
00:43trajectory
00:44to achieve a 3% commitment that we've made for under the FRA by 2028.
00:52Admittedly, debt is still at elevated levels, but we're seeing that with this gradual reduction in deficit,
00:58we are able to gradually break down the debt ratios from 65.2% last year
01:06to, we're projecting about 64% at the end of this year, and this is usually the next year.
01:11It's always a balancing act. It's always something, why can we bring down your debt even faster?
01:16But, obviously, that would mean a far sharper reduction in deficit,
01:22which then translates to less fiscal support for economic activity in the country.
01:28Especially given the current global uncertainties, we seem to feel it's important that we do not drastically reduce the deficit,
01:35and still maintain an expansionary fiscal policy.
01:38That reason that our operating and development expenditure for budget to 3.7% is around 460 billion,
01:46continues on the governance agenda. We're still very much committed to see-through our commitment under fiscal responsibility.
01:57On top of that, we've already legislated the Government Procurement Act, but it becomes effective next year.
02:03So, one of the examples that Prime Minister mentioned in speech is to make public details of all government procurement.
02:10Then, one of the other legislations that Prime Minister articulated is to push for a State-Owned Entities Act
02:18within this coming session, or at least early next year, and that's really, to put it bluntly,
02:24to see how do we prevent another 1.8.2.5.5.5 or FELDA recurring.
02:29That's part of strengthening the governance around investment and procurement processes on agencies under the Government.
02:42But, at the end of the day, a key message is that we are still having an expansionary budget,
02:50but it's done in a means that it is still within what we would call credential and responsible fiscal management.
