KUALA LUMPUR (Oct 21): The government has been urged to broaden the tax base and develop new strategic revenue sources to strengthen public finances and create greater fiscal space to fund national development.

Datuk Seri Amirudin Shari (Pakatan Harapan-Gombak) said spending commitments on subsidies, emoluments, debt servicing and retirement benefits limited the government's capacity to pursue economic reforms and transformation programmes.

He said stronger investment and trade must also translate into higher government revenue to ensure the benefits of economic development could be channelled to the people on a sustainable basis.

“However, we must consider a broader tax base and identify other viable sources of national revenue,” he said during the debate on the Supply Bill 2027 for its second reading in the Dewan Rakyat on Wednesday.

Amirudin, who is also the Selangor menteri besar, called on the Finance Ministry to explain the measures it had taken to ensure economic growth translated into higher government revenue and strengthened the government's capacity to assist the people.

He said the effectiveness of national development frameworks, including the Madani Economy and the industrial development plan, should also be assessed by their contribution to government revenue, alongside economic growth, investment and trade.

He said calls for greater public assistance must be considered alongside the government's ability to generate revenue through a more effective tax system.

He added that revenue generation required careful planning to support national development, transformation and reform while reducing reliance on funds from Petroliam Nasional Bhd (PETRONAS) and government-linked investment companies.

Amirudin also proposed selective government participation in strategic industries to develop new revenue streams that could support national development and benefit the people.

“PETRONAS is a good example. But we need to undertake another ‘moonshot’ project in our country that does not rely on a single revenue source or sector, so that the returns can benefit the people,” he said.

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