PETALING JAYA: At least 50% of development expenditure will be allocated to six least-developed states - Sabah, Sarawak, Kelantan, Terengganu, Kedah and Perlis.
This is to ensure a more balanced regional growth and reduce development gaps, according to the 12th Malaysia Plan.
“Most of the allocations will be channelled to improve connectivity and to produce better access to basic infrastructure, amenities and services,” read the Plan, which was tabled at Dewan Rakyat on Monday (Sept 27).
As part of enhancing budgeting transparency and aligning priorities under the 12th Plan, government allocations will prioritise high-impact projects that generate higher multiplier effects in the economy.
Reiterating the government’s commitment to ensure sound and sustainable public finance management, the Fiscal Responsibility Act will be introduced during the 12th Plan to enhance fiscal discipline and improve fiscal governance and transparency.
“The Act will institutionalise good principles and practices of responsible fiscal management, particularly in managing fiscal risks, establishing fiscal rules and ensuring prudent public debt management,” it said.
The Plan said a legal framework will be formulated to improve governance, transparency, efficiency and effectiveness of government procurement where an independent regulatory body will be formed to ensure compliance and proper monitoring of government procurement.
“The effectiveness of development projects in promoting socio-economic development will be enhanced by improving the delivery mechanism and revising the regulatory framework.
“Evaluation reports for complemented projects will be made mandatory across line ministries and administrative and legal action will be taken against controlling officers who implemented projects which deviated from the approved scope,” it read.
Through this exercise, issues such as non-compliance, misconduct and inefficiency in project management will be detected early and appropriate remedial action can be taken.