In general it is refer to any budget that is prepared

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In general, it is refer to any budget that is prepared for a 12-month period. An annual budget outlines both the income (revenues) and expenditures that are expected to be received and paid over the coming year. Annual budgets are used by individuals, corporations, governments and various other types of organizations.
Malaysia Annual BudgetThe Malaysia Budget is normally delivered and tabled by Prime Minister / Finance Minister in October.It is an economic and financial planning that reflects the economic position of the year and the economic prospects for the following year.It evaluates the economic performance of the current year which include global economy, Malaysian economic performance by sector, public finance and expenditures, external trade, economic management and Malaysian economic prospects in the following year.
It lists down all the issues and challenges and measures to be taken by the government to overcome those issues.It also highlight the sources of revenues and how this revenues are allocated for operating and development expenditures and sources of finance.All these information are documented in annual budget report.
National Budget PolicyTypes of budget policy:i.Budget deficitThe amount by which the government expenditures exceed its revenues during a specified period time – (G > T).
ii. Budget SurplusThe amount by which the government expenditures is less than its revenues during a specified period time – (G < T)iii. Balanced budgetA balanced budgetis when there is neither a budgetdeficit or a budgetsurplus when revenues equal expenditure ("the accounts balance") – (G = T)
The Relationship between Deficit & DebtWhen the government runs a deficit, it must borrow to finance it (i.e. by selling government securities to the public).This borrowing increases the government debt.
Exercise 2C = 9,000 + 0.75YdI = 1,500G = 6,000T = 6,000Based on the above infomations, answer the following questions:(a) Find Y* using Y=AE & injections = leakages approaches.(b) Calculate the MI, MG& MT.(c) Compute new Y* if Gby 1,000.(d) Demonstrate your answers in (a) & (c) in an appropriate diagram.(e) Is the economy experiences a budget deficit, budget surplus or balanced budget?
Determination of Y* in 4-Sector EconomyWhat is meant by 4-sectors economy?-Households + Firms + Government+ external sector (i.e. export & import)
Export FunctionExport (X) does not influenced by the domestic income level.XXYX1X2
Determinants of ExportForeign consumers’ taste & preferenceForeign incomeForex rateTechnology Foreign trade policy (i.e. tariff, import quota)Inflation
Import FunctionImport (M) & Y are positively related.M = M0+ mYwhere: M0= autonomous importm = Marginal Propensity to Import (MPM)Y = domestic income
Import curveImport (M) & Y are positively related.

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