The federal budget for next year, announced in September, is seen by many as another in a string of election budgets. Penang Monthly looks at the viability of this latest balancing by the federal government of expenses and revenue. The increasing dependence on Petronas, it is noted, is cause for worry.

In Malaysia’s final national budget before the impending 13th General Election, the federal government is pushing its fiscal limits, aiming to satisfy international observers, business operators, civil servants and citizens from all backgrounds. What effect will this have?

In order to better understand the budget, we should first look at the sources of funds for the budget, and how these funds will be used.

The government budget consists of expenses such as government servants’ salaries (emoluments), subsidies, pensions and gratuities, supplies and services, grants and transfers, and debt service charges.

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