What’s in the budget for state governments?

loading

Nowhere is the excessive centralisation of Malaysian politics more obvious than in how the National Budget is controlled and conceived. For example, the Prime Minister’s Department uses up 5.8% of the whole, with a volume that is 10 times the budget of the richest state, Selangor; and 15 times that of Penang’s.

Prime minister Najib Abdul Razak tabled the 2012 Budget amidst great fanfare, announcing a slew of benefits for almost every possible layer of society. One common criticism is that his administration was heavy on welfare handouts, despite the fact its Performance Management and Delivery Unit (Pemandu) chief had earlier warned of the country’s bankruptcy should our deficit be allowed to continue. Malaysia, as a result, is in its 15th consecutive year of a budget deficit, and although the government expects this budget deficit to be reduced to 4.7% in 2012 from 5.7% last year, this will be achieved only given a five to six per cent economic growth something economists, including those from the Malaysian Institute of Economic Research, have expressed serious doubts over.


To read the rest of the article and to access our e-Archive, subscribe to us for RM150 a year.



Related Articles

STATES OF REFORM
Jun 2013

Selangor remains Pakatan's stronghold

An analysis on the GE13 outcome in the state of Selangor.

STATES OF REFORM
May 2013

An Election by Manifesto

An analysis of the promises given by the Penang and Selangor state governments in their respective manifestos.

STATES OF REFORM
Apr 2013

What Will a Second Term Mean for Penang and Selangor?

What policies should the Pakatan state governments focus on in their second term?

STATES OF REFORM
Mar 2013

Ensuring Growth to Ensure Sustainability

Malaysia needs long-term comprehensive measures to secure a stable future.