Despite the prolonged challenges in the external environment, the government will continue to consolidate its fiscal position in a firm, but measured way, to ensure growth momentum is not undermined.
Fiscal management will be enhanced through various initiatives, with government expenditure, coming under greater scrutiny to ensure value-for-money spending.
"The quality of the governance structure in fiscal institutions will be enhanced," said the Finance Ministry in its Economic Report 2013/2014, released today.
The report is issued in conjunction with the tabling of the 2014 Budget today in Parliament by Prime Minister Datuk Seri Najib Razak, who is also Finance Minister.
The Ministry also said the Fiscal Policy Committee will give credence to fiscal policy formulation and its adoption by the broader public sector.
"It will endorse principles for sound fiscal policy that will guide the implementation of strategies to strengthen public finances and fiscal discipline in government operations," it added.
Meanwhile, the findings and the recommendations of the Auditor-General's report will be incorporated in administrative procedures, while internal controls within government agencies are to be strengthened.
According to the Finance Ministry, rules and regulations will be regularly updated to be more relevant and purposeful, with action taken against errant civil servants for wastage or negligence.
"Cost-cutting measures will be undertaken without affecting productivity and quality of service delivery.
These include staff redeployment and close monitoring of project implementation to contain cost over-runs," it said.
It also said to on the revenue side, a holistic review of the tax system will be undertaken.
"In line with the government's fiscal initiatives, major public sector transformation programmes will be accelerated, to enhance the effectiveness and efficiency of the public service delivery system," the Finance Ministry added.-- Bernama