Budget Trend And Focus 2022-2024

▪ spending plan based on revenue and expenditure in a fiscal year

▪ If the government spends more then it collects in revenue there
is a deficit in that year. If the government has less expenditures
than it collects in taxes, there is a surplus
▪ If the government has a deficit (spending is greater than
revenue), it will fund the difference by borrowing money and money spent by the public sector on the
raises from taxes, asset income, and transfer 1 issuing national debt acquisition of goods and provision of services
receipts at the federal, state, and local levels. such as education, healthcare, defense, and
Development expenditure social protections. The actual expenditures
Tax collection is the main revenue source for may be greater than or less than the budget
governments Developmental expenditure refers to the expenditure of
the government which helps in economic development by
increasing production and real income of the country
Operating expenditure
capital account expenditure 2
1 Funds by borrowing (selling bonds) are not considered revenue revenue account • usually not recurring and it to pay the cost of managing and
due to when governments borrow, they compete with everybody • includes expenses brings benefits in the long run administering the country. For example,
else in the economy who wants to borrow the limited amount of which are not used for • used by an organization or the emoluments, debt service provision, grant,
savings available. As a result of this competition, the real interest the creation of assets government to purchase and and surrender to the state government and
rate increases and private investment decreases. This is or repayment of maintain fixed assets like other administrative expenses
phenomenon is called crowding out liabilities. These property, machine or any other
basically include equipment
2 Capital expenditure includes the creation of assets as well as current expenses of • Involves large allocation (5
reduction of liabilities. For example, repaying loans also constitutes the government years);
a capital expenditure. This is because it helps in reducing liabilities • Short term cash flow • Long-term cash flow;
of an organization or government. These expenses are covered for • Used immediately or • Requires supervision and
by the government by raising capital or by capital transfers. within 1 year maintenance;
• Financed from loan sources
 Budget Trend And Focus 2022-2024

BENEFITS OF EFFECTIVE
BUDGET MANAGEMENT
✓ Enable the Department to plan short and long
term revenue and expenditure;
✓ Determine the distribution of financial resources
according to priority;
✓ To ensure that a government does not spend
more than the amount legally appropriated by its
governing body
✓ An effective policy will be achieved.
Budget Trend And Focus 2022-2024
 Budget Trend And Focus 2022-2024

REVENUE BUDGET FOR 2022 - 2024

2022 2023 2024
REVENUE
% (RM - Million) % (RM - Million) % (RM - Million)
Loans and Use of Government Assets 29.50 97,970 24.50 94,604 21.90 86,242
Non-Tax Revenue 18.90 62,767 19.00 73,367 16.20 63,796
Income tax 35.70 118,560 39.90 154,070 44.40 174,847
Indirect Taxes 13.30 44,169 14.00 54,060 14.90 58,676
Other Direct Taxes 2.60 8,635 2.60 10,040 2.60 10,239
TOTAL 100 332,100 100 386,140 100 393,800
 Budget Trend And Focus 2022-2024

REVENUE BUDGET FOR 2022 - 2024

BUDGET 2022-2024 (REVENUE, %) BUDGET 2022-2024 (REVENUE, RM'000 000 )
50 200000

45 180000

40 160000

35 140000

30 120000

100000
25

80000
20
60000
15
40000
10
20000
5
0
0 Loans and Use of Non-Tax Revenue Income tax Indirect Taxes Other Direct Taxes
Loans and Use of Non-Tax Revenue Income tax Indirect Taxes Other Direct Taxes Government
Government Assets Assets

2022 2023 2024 2022 2023 2024

 Budget Trend And Focus 2022-2024

FINDINGS - Revenue Budget For 2022 – 2024

Direct tax (Income Tax) Other Direct Taxes

• Company tax increased – increasing • Real estate gain tax

audit and enforcement
• Individual tax increased –
reduced unemployment
rate and better annual wage
growth
• revision of individual
income tax rates for higher
income groups
increased - better
expectation in real
estate market
Indirect Taxes (Excise Duty,
Import Duty)

• Sst' higher collection

 Budget Trend And Focus 2022-2024

FINDINGS
FINDINGS-- Revenue
RevenueBudget
BudgetFor
For2022
2022––2024
2024
Non-Tax Revenue (License, fine,
rental, payment, levy, bond issues
and profits of state-owned
decreasing companies)
Loans and Use of
Government Assets becomes payable only when
services offered by the government
are availed

• Annual dividends from PETRONAS are

expected lower
• Low return on investment
 Budget Trend And Focus 2022-2024

EXPENDITURE BUDGET FOR 2022 - 2024

2022 2023 2024
EXPENDITURE
% (RM - Million) % (RM - Million) % (RM - Million)
Operating Expenditure
Emoluments 26.00 86,346 23.50 90,743 24.30 95,693
Debt service payments 13.00 43,173 11.90 45,951 12.60 49,619
Services And Supplies 9.10 30,221 8.30 32,050 9.70 38,199
Retirement Pay 8.50 28,229 8.00 30,891 8.20 32,292
Giving and Handing over to the State Government 2.40 7,970 2.10 8,109 2.20 8,664
Subsidies and social assistance 5.20 17,269 15.20 58,693 13.40 52,769
Others 6.10 20,258 5.80 22,396 6.70 26,385
Development Expenditure
General Administration 1.20 3,985 1.00 3,861 1.00 3,938
safety 2.70 8,967 3.00 11,584 3.20 12,602
social 6.80 22,583 6.90 26,644 7.20 28,354
economy 12.10 40,184 14.30 55,218 11.50 45,287
covid-19 fund 6.90 22,915 0.00 0 0.00 0
TOTAL 100 332,100 100 386,140 100 393,800
 Budget Trend And Focus 2022-2024

EXPENDITURE BUDGET FOR 2022 - 2024

BUDGET 2022-2024 (EXPENDITURE, %) BUDGET 2022-2024 (EXPENDITURE, RM'000 000)
30.00 120000.00

25.00 100000.00

20.00 80000.00

15.00 60000.00

10.00 40000.00

5.00 20000.00

0.00 0.00

2022 2023 2024 2022 2023 2024

 Budget Trend And Focus 2022-2024

FINDINGS - Expenditure Budget For 2022 – 2024

increasing

Giving and Handing General

Emoluments Retirement Services And Debt service
pay Supplies payments
over to the State others Administration social Safety
Government

increase Pension, material first gift that finance upgrade the • build new schools acquisition of
annual salary payment supply; prioritized stipulated in the operating network system and add good new assets,
and new gratuity and cleaning settlement in Federal Constitution expenses ICT as well as existing facilities upgrading
recruitment for cash in lieu of services and OE such as repairing and • build and upgrade military and
critical leave security; emolument maintaining facilities health security
positions accumulated repair and s as well Government and supply equipment
especially in rest increase maintenance; services and buildings and equipment health ready
health and telecommunic supplies facilities such as care there as well
education ations and civil servant • build Government as building
services utilities and quarters, court quarters and and
services complex housing affordable renovating
another and training for the people the station
institutions police,
military camp
and quarters
for members
safety
 Budget Trend And Focus 2022-2024

FINDINGS - Expenditure Budget For 2022 – 2024

Economy
decreasing
lower than RM55 billion in 2023
including payments 1MDB bonds that
have matured
Subsidies and social
assistance

implementation of the
subsidy rationalization
 Budget Trend And Focus 2022-2024

BUDGET TRENDS AND FOCUS FOR 2022 UNTIL 2024

Focus on fiscal strengthening, consolidation, and reforms. The

government aims to widen the revenue base, reduce
expenditures, and address fiscal challenges. The budget plans for
these years indicate several significant developments and
priorities.
 Budget Trend And Focus 2022-2024

BUDGET TRENDS AND FOCUS FOR 2022 UNTIL 2024

The allocation of such a significant amount of funds highlights

the government's dedication to addressing various economic and
developmental priorities.
 Budget Trend And Focus 2022-2024

BUDGET TRENDS AND FOCUS FOR 2022 UNTIL 2024

Revenue collection is expected to increase in the coming years.

According to the provided information, revenue collection is
projected to rise to RM307.6 billion in 2024, compared to
RM303.2 billion in the current year. This increase reflects the
government's effort to enhance revenue generation and improve
financial stability.
 Budget Trend And Focus 2022-2024

BUDGET TRENDS AND FOCUS FOR 2022 UNTIL 2024

In line with the goal of fiscal strengthening, the government aims

to reduce the fiscal deficit. The fiscal deficit is projected to drop
to 4.3% in 2024 from 5% in the current year and 5.6% in 2022.
This reduction signifies the government's commitment to
improving financial stability and sustainability.
 Budget Trend And Focus 2022-2024

BUDGET TRENDS AND FOCUS FOR 2022 UNTIL 2024

Budget 2024 will focus on three key thrusts. These are delivering
reforms to enhance governance and the public delivery system,
transforming the economy and businesses, and ensuring
inclusivity and social well-being. These focus areas demonstrate
the government's intention to drive positive changes in
governance, economic structure, and social welfare.
 Budget Trend And Focus 2022-2024

BUDGET TRENDS AND FOCUS FOR 2022 UNTIL 2024

The government also proposes specific measures to achieve its

budget goals. For example, it plans to increase the Service Tax to
8%, and it highlights the unemployment rate, which stood at
3.4% as of August 2023. These measures aim to optimize
revenue generation and address economic challenges effectively.
 Budget Trend And Focus 2022-2024

BUDGET TRENDS AND FOCUS FOR 2022 UNTIL 2024

The theme of Budget 2024, as tabled in Parliament on October

13, 2023, is "Economic Reforms, Empowering the People." This
theme reflects the government's vision of enacting necessary
reforms and empowering the citizens through economic
measures.
 Budget Trend And Focus 2022-2024

CONCLUSION
Malaysia's budget trend and focus from 2022 until 2024 :

Revolve around fiscal strengthening, consolidation, and reforms.

The government aims to widen the revenue base, reduce expenditures, and
address fiscal challenges.

Budget 2024, the largest in Malaysia's history, emphasizes economic reforms and
empowering the people.

Through these budget plans, the government seeks to improve financial stability,
promote sustainable economic growth, and enhance the well-being of its citizens.