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    Importance of Preparing Budget in Public Sector and Malaysia

    Uploaded by

    Wong Kean Weng
    The document discusses the importance of budgeting in the public sector, particularly in Malaysia. It notes that the Malaysian government has implemented Outcome Based Budgeting since 2012 to improve public budget management. The government must focus its budget on benefiting society through areas like education, national defense, economic stability, and more. Budgeting allows the government to detect weaknesses, allocate resources effectively, promote economic growth through tax policies, and ensure public funds benefit society. In Malaysia, the annual federal budget is presented by the Minister of Finance in October, while states also create budgets after the federal plan and source funding from the federal government.

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    Importance of Preparing Budget in Public Sector and Malaysia

    Uploaded by

    Wong Kean Weng
    19 views2 pages
    The document discusses the importance of budgeting in the public sector, particularly in Malaysia. It notes that the Malaysian government has implemented Outcome Based Budgeting since 2012 to improve public budget management. The government must focus its budget on benefiting society through areas like education, national defense, economic stability, and more. Budgeting allows the government to detect weaknesses, allocate resources effectively, promote economic growth through tax policies, and ensure public funds benefit society. In Malaysia, the annual federal budget is presented by the Minister of Finance in October, while states also create budgets after the federal plan and source funding from the federal government.

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    Public Sector

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    The document discusses the importance of budgeting in the public sector, particularly in Malaysia. It notes that the Malaysian government has implemented Outcome Based Budgeting since 2012 to improve public budget management. The government must focus its budget on benefiting society through areas like education, national defense, economic stability, and more. Budgeting allows the government to detect weaknesses, allocate resources effectively, promote economic growth through tax policies, and ensure public funds benefit society. In Malaysia, the annual federal budget is presented by the Minister of Finance in October, while states also create budgets after the federal plan and source funding from the federal government.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19 views2 pages

    Importance of Preparing Budget in Public Sector and Malaysia

    Uploaded by

    Wong Kean Weng
    The document discusses the importance of budgeting in the public sector, particularly in Malaysia. It notes that the Malaysian government has implemented Outcome Based Budgeting since 2012 to improve public budget management. The government must focus its budget on benefiting society through areas like education, national defense, economic stability, and more. Budgeting allows the government to detect weaknesses, allocate resources effectively, promote economic growth through tax policies, and ensure public funds benefit society. In Malaysia, the annual federal budget is presented by the Minister of Finance in October, while states also create budgets after the federal plan and source funding from the federal government.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Importance of preparing budget in public sector and Malaysia

    Budgeting is a very significant and important process in a public sector. In this assignment, we
    will be focusing on the government`s budgeting. We will also look into the public sector budgets
    which focus on the government expenditures. As we all know, the government budget is a very
    important tool as it allows a country to attain its economic goals and helps in allocate resources
    properly.

             As for Malaysia, our government has implemented an Outcome Based Budgeting (OBB)
    since 2012 in order to improve the public budget management. Besides, our government
    forecasts it’s budgeting once a year. The government has to focus on the benefits to the society,
    facilitating financial inclusion, upgrading the national defense, providing educational
    opportunities to citizens, economic stability and many much more sectors need to be focused on.

             When it comes to budgeting, the government is able to detect the areas of weakness
    which can assist them in allocating the resources in those in-need for the budget. Government
    should be able to know which sectors should be focused more on and make sure the funds will
    reach where it’s needed the most and help develop the area to improve the standard of living of
    the people.

             By performing budgeting, the government can maintain and promote the growth of the
    country’s economy. Government can make some changes in the imposition of taxes by providing
    tax rebates to encourage the citizens to spend more on spending. As expenditure of the citizens
    can boost the country’s economic growth and also growth in the GDP of the country. 

             Governments can also benefit society by managing the public funds. They need to make
    sure the resources are being used effectively in benefiting the society. The increase of
    government’s budgeted expenditure also means that the public are gaining improvement in terms
    of quality of services or goods provided by the government. As we can see, it is important for a
    country to perform budgeting on the public sector which can benefit the citizens.
    Ministry and Minister Involved In The Process

    In Malaysia, the government/federal budget is done and presented by the Minister of Finance
    annually. The government budget will usually be released in October, which is before the start of
    the fiscal year. Besides, every state in Malaysia also performs their own budgeting. Due to the
    states getting money from the federal government, states will only release their budgeting plan
    after the federal government has released the federal budgeting plan.

    The process of creating a government budget is not that easy. Every department is required to
    submit “The Main Estimates” to the Treasury Board Secretariat. The board will then look into
    the documents submitted by the departments and make a plan on the amount of expenditure that
    every department required. After that, the Board will make an initial proposed budget and send it
    to the Cabinet. The Cabinet and Prime Minister’s Department will further adjust the budget
    based on various factors. The budget is then announced in the House of Representatives by the
    Minister of Finance. The budget is then being voted for approval by the Malaysia parliament and
    also Yang di-Pertuan Agong before the release of the federal budget.

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