Political Economy of the Budgetary Process and Public Expenditure in Malaysia

Abstract

A nation’s ruling political party has the right to draft and implement economic policies, including budgetary policy. In the case of Malaysia, budget policy and expenditure is associated with medium- and long-term economic development plans, the current thinking behind economic policies, and any additional measures related to major economic events such as the impact of global economic crises. Also, the budget includes economic policies according to the ruling party’s manifesto. Even though the allocation of the budget is the ruling government’s privilege, the government’s financial plans, spending, taxation and borrowing are subject to laws, rules and procedures. The ruling government cannot simply utilise economic resources for its particular political interests, as the discussion illustrates.

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Notes on contributors

Tan Yee Shin

Tan Yee Shin and Mohamed Aslam are in the Faculty of Economics and Administration, University of Malaya, Kuala Lumpur, Malaysia.

Mohamed Aslam

Tan Yee Shin and Mohamed Aslam are in the Faculty of Economics and Administration, University of Malaya, Kuala Lumpur, Malaysia.