Foreign investment is slowing down not only in Malaysia but also in the whole Third World because the so called industrial First world is in serious economic doldrums. ii) How can the giant multinationals increase investment abroad when they are experiencing poor profits and weak investment growth? iii) Ministries that under spend should be pulled up and asked to explain publicly. After all, tax payers need to know why their hard earned taxes are not spent expeditiously for the public good. 37
iv) Where public officials are found to be inefficient or obstructive, they should be required to pay the price for their failures. v) Priority in operating and development expenditure should be given to the alleviation of poverty both in the rural areas and especially now in the depressed urban areas. vi) Where the regulations are obstructive and add to implementation delays and corrupt practices – prevalent at the state government and local authority levels – they should be reduced or removed urgently. vii) There will be no loss or revenue and the business environment will improve substantially with fewer impediments and less corruption. In conclusion, the Pre-Budget Dialogue was well managed. It is now clearer that the scope for major fiscal and monetary budget measures is limited by the shrinking revenues and foreign exchange earnings with the decline in United States and Japanese economy. However even within these constraints, there can be changes in the budget’s strategic direction that would sustain national economic resilience and at the same time favour the lower-income groups to a greater extent than before. 6.2 Budget Process The process of budgeting is design at all levels of government. This is to ensure that there is a process of controlling, accountability and planning. The budget officers will usually prepare the budgets annually to be presented and approved by the parliament. This shows that there is control over the government’s spending in the public budgetary process. 38
The budget statement must include all the annual estimate of the revenues and expenditures. In the planning process, the government will analysed the estimate revenues and expenditures and its implication of its current and proposed programs with the financial status. The budgetary process can also stabilize the economy. For example, if the government’s goal is to decrease the unemployment rate among the graduates, the government will allocate a certain percentage of its budgets to run a program or project such as the “Graduate Training Scheme” (Skim Latihan Graduan). 6.3 Budgetary Cycle: Malaysian Perspective There are four stages involved in the budgetary cycle in Malaysia: i) Planning ii) Budget preparation iii) Budget implementation iv) Budget evaluation 6.3.1 Budget Planning All government agencies are responsible in planning the budget estimation. In this stage, the agencies need to plan their next year activities and programs with effective and efficient.
You've reached the end of your free preview.
Want to read all 47 pages?