The government’s fiscal reform initiative is already underway, the Ministry of Finance (MoF) said today.
In a statement, it also said the shortfall from the Goods and Services Tax (GST) which is zero-rated effective June 1, will be cushioned by specific revenue and expenditure measures to be announced in due course.
It added the Sales and Services Tax (SST) would be re-introduced.
"Expenditure reduction will begin with rationalisation, efficiency measures and reduction in wastages. Of significance, oil prices have been higher than the US$52 per barrel estimated for Budget 2018. This provides fiscal buffers for the immediate future.
"Fiscal responsibility, transparency and governance will be a paramount consideration in rolling-out the fiscal reform," the MoF said.