Malaysian federal budget

The budget is announced in the Dewan Rakyat (House of Representatives) by the Minister of Finance, who traditionally wears Baju Melayu while doing so. The Budget is then voted on by the House. Budgets are a confidence measure, and if the House votes against it, the government can fall, although it has never happened. The governing party strictly enforces party discipline, usually expelling from the party caucus any government Member of Parliament (MP) who votes against the budget. Opposition parties almost always vote against the budget. Since 2008, the opposition bloc used to prepare a complete alternative budget and present this alternative to the Malaysian people along with the main budget. In cases of minority government, the government has normally had to include major concessions to one of the smaller parties to ensure passage of the budget.

Malaysia follows the conventions of the Westminster system. For example, the prime minister must have the support of a majority in the Dewan Rakyat (House of Representatives), and must in any case be able to ensure the existence of no absolute majority against the government. In relation to the budget, that requires that if the House fails to pass the government's budget, even by one ringgit, then the government must either resign so that a different government can be appointed or seek a parliamentary dissolution so that new general elections may be held to re-confirm or deny the government's mandate.

The process of creating the budget is a complex one which begins within the working ranks for the Federal Government. Each year, the various departments and agencies that make up the Government submit what are called 'The Main Estimates' to The Treasury Board Secretariat. These documents identify the planned expenditure of each department and agency, linking these proposed expenses to programs, to objectives and ultimately to the priorities of the current ruling Government. The Treasury Board Secretariat combines these budget estimates and compile an initial proposed budget. From there, the Cabinet and Prime Minister's Department adjust the budget based on a series of economic, social and political factors. In reality, decisions are usually made with the primary intend of re-election and so often include advantages for key regions and lobby groups.

The government reserves the right to submit "supplementary supply bills", which add additional funding above and beyond what was originally appropriated at the beginning of the fiscal year. Supplementary supply bills can be used for things like disaster relief and to update its agencies' spending totals for the current financial year and report any governmental re-organisations.

The Federal Government’s revenue is classified into four general categories, namely tax revenue, non-tax revenue, non-revenue receipts and revenue from the Federal Territories.

Tax revenue is classified into direct tax revenue and indirect tax revenue.

Direct tax revenue includes revenue from:

• income tax and supplementary income tax (individual, company, petroleum, withholding and cooperatives);
• estate duty;
• stamp duty;
• real property gains tax (RPGT);
• Labuan offshore business activity tax; and
• miscellaneous direct taxes.

Indirect tax revenue includes revenue from:

• Goods and Services Tax (GST);
• export duties;
• import duties;
• excise duties;
• levies; and
• miscellaneous indirect taxes.

Non-tax revenue consists of:

• licences, registration fees and permits: inclusive of all charges imposed on the granting of rights to individuals, corporations, businesses including petroleum royalty, and other enterprises as well as motor vehicle licences for purpose of regulation or control and levy on foreign workers;
• service fees: inclusive of receipts from services rendered by the Federal Government to the public;
• proceeds from sales of goods: inclusive of receipts from the sales of physical assets owned by the Government including lands, buildings, office equipments, storage facilities and the sale of miscellaneous goods to the public;
• rentals: inclusive of rentals from land, buildings, vehicles and machineries;
• interests and proceeds from investments: inclusive of proceeds from sale of investments, dividends earned from bonds or shares (PETRONAS dividend, Bank Negara dividend, Khazanah dividend), bank interests and interests on loans granted by the Government;
• fines and penalties: inclusive of out-of-court settlement fees as well as fines and forfeitures;
• contributions and compensations received from home and abroad;
• income from exploration of oil and gas: income from petroleum operation Malaysia-Thailand Joint Authority (MTJA); and
• other non-tax revenue.

Non-revenue receipts include:

• refunds of expenditures: inclusive of payments in previous years and refunds of salaries arising from resignations and training expenses, trust fund refunded and unclaimed funds; and
• inter-departmental credits: inclusive of transfer of funds between ministries or departments for services rendered between Government agencies, reimbursements of the Government’s contributions under the Employees Provident Fund Scheme and contributions from Government departments, statutory bodies or Government owned enterprises.

Revenue from the Federal Territories consist of tax and non-tax revenue including receipts from licences and permits, premiums, quit rent, sale of assets, rentals, service fees and entertainment duties.

{{Pie chart

| caption = Revenue estimates for 2016 Budget, excluding 2016 tax measures

| label1 = Companies income tax

| value1 = 33.0

| color1 = #447C70

| label2 = Goods and services tax

| value2 = 17.3

| color2 = #A1C490

| label3 = Individual income tax

| value3 = 13.4

| color3 = #006000

| label4 = Interests and proceeds from investments

| value4 = 9.5

| color4 = #00FF99

| label5 = Licenses, registration fees and permits

| value5 = 6.0

| color5 = #00A000

| label6 = Excise duties

| value6 = 5.5

| color6 = #A8F96C

| label7 = Petroleum income tax

| value7 = 4.1

| color7 = #648029

| label8 = Stamp duty

| value8 = 3.0

| color8 = #D5E9CF

}}

[http://www.treasury.gov.my/index.php?option=com_content&view=article&id=6440:buku-anggaran-hasil-kerajaan-persekutuan-2016&catid=444&Itemid=2856&lang=ms Official sources]{{dead link|date=May 2017 |bot=InternetArchiveBot |fix-attempted=yes }}

(In million MYR)

[http://www.treasury.gov.my/index.php?option=com_content&view=article&id=6436:anggaran-perbelanjaan-persekutuan-2016&catid=447&Itemid=2473&lang=ms Official sources]{{dead link|date=May 2017 |bot=InternetArchiveBot |fix-attempted=yes }}

These tables are in million MYR.

[http://www.treasury.gov.my/index.php?option=com_content&view=article&id=6436:anggaran-perbelanjaan-persekutuan-2016&catid=447&Itemid=2473&lang=ms Official sources]{{dead link|date=May 2017 |bot=InternetArchiveBot |fix-attempted=yes }}

These tables are in million MYR. The budget for the 2016 fiscal year (also demonstrating the basic budget structure) can be found below.

;1960s: [http://www.parlimen.gov.my/files/hindex/pdf/DR-25111959.pdf 1960] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-30111960.pdf 1961] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-21121961.pdf 1962] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-28111962.pdf 1963] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-16121963.pdf 1964] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-25111964.pdf 1965] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-17111965.pdf 1966] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-19011967.pdf 1967] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-18011968.pdf 1968] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-09011969.pdf 1969]

;1970s: [http://www.parlimen.gov.my/files/hindex/pdf/DR-06121972.pdf 1973] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-05121973.pdf 1974] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-12111974.pdf 1975] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-06111975.pdf 1976] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-29101976.pdf 1977] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-28101977.pdf 1978] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-20101978.pdf 1979]

;1980s: [http://www.parlimen.gov.my/files/hindex/pdf/DR-18101979.pdf 1980] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-17101980.pdf 1981] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-23101981.pdf 1982] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-22101982.pdf 1983] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-21101983.pdf 1984] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-19101984.pdf 1985] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-25101985.pdf 1986] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-24101986.pdf 1987] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-23101987.pdf 1988] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-21101988.pdf 1989]

;1990s: [http://www.parlimen.gov.my/files/hindex/pdf/DR-27101989.pdf 1990] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-14121990.pdf 1991] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-01111991.pdf 1992] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-30101992.pdf 1993] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-29101993.pdf 1994] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-28101994.pdf 1995] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-27101995.pdf 1996] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-25101996.pdf 1997] · [http://www.parlimen.gov.my/files/hindex/pdf/DR-17101997.pdf 1998] · [https://web.archive.org/web/20160530121124/http://www.treasury.gov.my/index.php?option=com_content&view=article&id=2583:ucapan-bajet-1999&catid=256&Itemid=2472&lang=ms 1999]

;2000s: [https://web.archive.org/web/20160530125947/http://www.treasury.gov.my/index.php?option=com_content&view=article&id=2582:ucapan-bajet-2000&catid=256&Itemid=2472&lang=ms 2000] · [https://www.treasury.gov.my/pdf/budget/speech/bs01.pdf 2001] · [https://www.treasury.gov.my/pdf/budget/speech/bs02.pdf 2002] · [https://www.treasury.gov.my/pdf/budget/speech/bs03.pdf 2003] · [https://www.treasury.gov.my/pdf/budget/speech/bs04.pdf 2004] · [https://www.treasury.gov.my/pdf/budget/speech/bs05.pdf 2005] · [https://www.treasury.gov.my/pdf/budget/speech/bs06.pdf 2006] · [https://www.treasury.gov.my/pdf/budget/speech/bs07.pdf 2007] · [https://www.treasury.gov.my/pdf/budget/speech/bs08.pdf 2008] · [https://www.treasury.gov.my/pdf/budget/speech/bs09.pdf 2009]

;2010s: [https://www.treasury.gov.my/pdf/budget/speech/bs10.pdf 2010] · [https://www.treasury.gov.my/pdf/budget/speech/bs11.pdf 2011] · [https://www.treasury.gov.my/pdf/budget/speech/bs12.pdf 2012] · [https://www.treasury.gov.my/pdf/budget/speech/bs13.pdf 2013] · [https://www.treasury.gov.my/pdf/budget/speech/bs14.pdf 2014] · [https://www.treasury.gov.my/pdf/budget/speech/bs15.pdf 2015] · [https://www.treasury.gov.my/pdf/budget/speech/bs16.pdf 2016] · [https://www.treasury.gov.my/pdf/budget/speech/bs17.pdf 2017] · [https://www.treasury.gov.my/pdf/budget/speech/bs18.pdf 2018] · [https://www.treasury.gov.my/pdf/budget/speech/bs19.pdf 2019] ·

;2020s: [https://www.treasury.gov.my/pdf/budget/speech/bs20.pdf 2020]

• Taxation in Malaysia
• Malaysian public debt

International:

• Government budget by country

{{reflist}}

• [http://www.treasury.gov.my/ Ministry of Finance]

• {{cite web|url=http://www.themalaysianinsider.com/rencana/article/belanjawan-2015-defisit-hutang-dan-perbelanjaan-kerajaan-amin-ahmad|title=Belanjawan 2015: Defisit, hutang dan perbelanjaan kerajaan – Amin Ahmad - The Malaysian Insider|access-date=2015-10-23|archive-url=https://web.archive.org/web/20160304081750/http://www.themalaysianinsider.com/rencana/article/belanjawan-2015-defisit-hutang-dan-perbelanjaan-kerajaan-amin-ahmad|archive-date=4 March 2016|url-status=dead|df=dmy-all}}

{{Malaysian federal budget}}

{{National government budgets}}

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Category:Economy of Malaysia

Budget