D: Case Study Questions Answer all the questions below Malaysia Trims Deficit in Budget 2013 how it will solve economic problems The Finance Ministry indicated in its Economic Report 2012/2015 that reduced spending means the Federal Government will record a lower 4% fiscal deficit of CDP gross domestic product 2015. With a higher tax revenue of RM159.2 billion, the Federal Government revenue is expected to reach RM208.7 billion, whereas total expenditure is projected to reduce by 1.1% to RM249.7 billion, supported by steps to check discretionary spending which would result in lower fiscal deficit. Non-tax revenue is expected to be RM49.5 billion-a 9.6% reduction-mainly Que to lower investment income returns, petroleum royalties income and the Malaysia-Thailand Joint Authority. Promising that the government will continue protecting the people's well-being, the ministry said public sector service delivery will be optimised to be more nimble and responsive in a private sector-driven economy, with prudent spending efforts projected to reduce operating costs to RM201.9 billion. Development expenditure will be reduced to RM47.8 billion or 19.1% of total 2013 expenditure, while the economic services sector will receive the largest portion of RM30 billion or 62.9% of total 2013 development spending To meet the growing demand for high-skilled, talented, creative and innovative workers, the education and training sub-sector will receive RM6.5 billion of the RM11.1 billion allocated to the social services sector. The security sector will be given RM4.6 billion, with the defence and internal security sub-sectors receiving RM5.9 billion and RM644 million respectively, RM2 billion will go towards continued improvement of public service delivery, promoting If usage in the civil service, and the repair and maintenance of government facilities. Federal Government Financial Position 2011 Revenue 185,419 KM mition 2012 207,246 208.650 Change 193 2013 2011 20131 2013 161 11.8 0.7 Operating expenditure 182.594 202.617 201,917 20.4 11.0 -0.5 Current balance 2.825 6,629 5,755 Gross development 46,416 49.822 47,750 -12.1 73 -42 expenditure Less Loan recovery 1,082 2.895 1,024 Net development expenditure 45.554 46.927 Overall balance -42.509 -42.291 46,726 -11.6 -59.995 3.5 -0.6 % of GDP -48 -45 -60 Revised estimate Budget estimate, excluding 2015 mars te Total may not add so due to unde Source: Adapted from The New Straits Times, 28 September 2012 Questions 1. List the sources of revenues based on this case and explain how the tax rate and govemment expenditure play important roles in the economy. 2. The government expenditures are divided into two types: operating and development expenditures What are the components of the development expenditures? 11:53 Back CamScanner 12-29-2020 14.33 pansionary fiscal policy and contractionary policy 10 Define an automatic focal policy, and describe how it will solve economic problems Section D: Case Study Questions 4G Answer all the questions below Malaysia Trims Deficit in Budget 2013 The Finance Ministry indicated in its Economic Report 2013/2015 that died spending mar the Federal Government will record a lower 4% fiscal defick of CDP gross domestic produ 2015. With a higher tax revenue of RM159.2 billos, the Federal Gove expected to reach RM208.7 billion, whereas total expenditure is projected to receb RM249.7 bilion, supported by steps to check dictionary spending which would lover fiscal deficit. Non-tax revenue is expected to be RM495 bos-a30% duty due to lower investment income returns, petroleum royalties income and the Malaysia-Tha Joint Authority Promising that the goverment will continue protecting the people's well-being the ministry said public sector service delivery will be optimised to be more nimble and responsive in a priate sector-driven economy, with prudent spending efforts projected to reduce operating costs to RM201.9 billion. Development expenditure wil be reduced to RM447.8 bon or 19.1% of total 2013 expenditure, while the economic services s ices sector will receive the largest portion of 50 billion or 63 or 62.9% of total 2 To meet the growing demand f scending 2013 talented, creative and innovative workers, the education and training sub-sector will receive RM6.5 bilion of the RM11.1 bilion alocated to the social services sector. The security sector will be given RM4.0 billion, with the delence and internal security sub-sectors receiving RM5.9 bilos and 1644 million respectively 2 billion will go towards continued improvement of public service delivery, promoting IT usage in the c service, and the repair and maintenance of government facilities Federal Government Financial Position 2011 2012 Revere 185419 207,246 206,650 163 118 Operating expenditure 182.594 202617 Current balance 3805 201.917 204 6,755 118 -03 Grodevelopment 46,416 49322 47.750 -12.1 13 -42 Less Loan recovery 1,02 LON 46.907 66,779 -11 15 S -04 Overall balance -42.50943.791 -39.996 % of GDP -48 -45 1 y: best song tet bhar de factor Source: Adapted from The New Straits Times 28 September 2012 Questions 1. List the sources of revenues based on this case and explain how the tax rate and get expenditure play important roles in the economy 2. The gement expenditures are divided into two types operating and development expenditures What are the components of the development expenditures