Gulam Hassan, Mohamed Aslam and Tan, Yee Shin (2012): Political Economy of The Budgetary Process in Malaysia.
Download (310kB) | Preview
The ruling political party or the ruling government has rights in drafting and implementing economic policies including the budget policy. In the case of Malaysia, as observed, the budget policy is associated with the long or medium term economic development plans that are drafted, current thinking or thought of economic policies and additional measures that would be introduced probably related to major economic events such as the impact of financial or global economic crises. Also the budget includes economic policies according to the ruling party’s manifesto and promises made during the election. Eventhough the budget is the ruling government’s privilege but the government’s financial plan, i.e the allocation and the manner of spending, taxation and borrowing are subject to law, acts, rules and procedures. The ruling government cannot simply utilize economic resources for its political means or interests. This paper argues that there is a solid link between the ruling political party with the preparation of the budget policy. To examine the matter this paper uses the survey method. This paper has found that in the case of Malaysia the Member of Parliaments do influence the outlining of the annual budget.
|Item Type:||MPRA Paper|
|Original Title:||Political Economy of The Budgetary Process in Malaysia|
|English Title:||Political Economy of The Budgetary Process in Malaysia|
|Keywords:||Political Institutions, Elections, Development Plans, Budget Policy, Malaysia|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O23 - Fiscal and Monetary Policy in Development
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy
O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O20 - General
P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies
P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy
|Depositing User:||Mohamed Aslam|
|Date Deposited:||07. Apr 2012 12:34|
|Last Modified:||13. Feb 2013 09:17|
Adolph, Chris; Christain Breunig, and Chris Koski (2007). Something’s Got to Give: The Political Economy of State Budget Trade-off. Paper presented at the Annual Meeting of the Midwest Political Science Association, August 29, Chicago.
Alesina, Alberto, Gerald Cohen and Nouriel Roubini (1993). ‘Electoral Business Cycle in Industrial Democracies’, European Journal of Political Economy, March 1993, 9:1-24.
Alesina Alberto. and Roberto Perotti. (1995). ‘The Political Economy of Budget Deficits’, IMF Staff Papers, March, 42: 1-31.
Beyle, Thad. (1996). ‘Governors: The Middleman and Women in Our Political System’, in Politics in the American States:A Comparative Analysis, (eds) Virginia Gray and Herbert Jacob, 6 th edition.. Boston, MA: Little Brown, pp. 207-52.
Comber, Leon (1983). 13 May 1969. A Histrorical Survey of Sino-Malay Relations, Heinemann Asia, Kuala Lumpur.
Cusack, T. (1999). ‘Partisan Politics and Fiscal Policy’, Comparative Political Studies 32(4): 464-486.
Dobell, P. and Ulrich, M. (2002). ‘Parliament’s performance in the budget process: A case study’, Policy Matters, May , vol. 3 (5):1-23.
Fjeldstad, Odd-Helge. and Tungodden B. (2003) ‘Fiscal corruption: A vice or a virtue?’, World Development, vol. 31(8): 1459-1467.
Goyal, Ashima (2010). Budgetary Processes: A Political Economy Perspective, MPRA Paper, No. 27786. Munchen.
Grilli, V., D. Masciandaro, and G. Tabellini. (1991). ‘Political and Monetary Institutions and Public Finance Policies in Industrial Democracies’, Economic Policy , 13: 341-392.
Meerman, Jacob (1979). Public Expenditure in Malaysia. Who Benefits and Why, Oxford University Press. London.
Norton, A and Elson, D. (2002). What’s Behind The Budget? Politics, Rights and Accountablility in the Budget Process, London, Overseas Development Institute.
Poterba, James. M. and Jurge Von Hagen, (1999). ‘Introduction’, Fiscal Policy Institutions and Fiscal Performance, (eds) James M Poterba and Jurge Von Hagen,. Chicago: University of Chicago Press: 1-12.
Poterba, James. (1994). ‘State Responses to Fiscal Crises: The Effects of Budgetary Institutions and Politics’, Journal of Political Economy, 102(4): 799-821.
Roubini, Nouriel and Jeffery Sachs. (1989). ‘Political and Economic Determinants of Budget Deficits in the Industrial Democracies’, European Economic Review, 33:903-938.
Salleh, Ismail and H-Osman Rani (1991). The Growth of the Public Sector in Malaysia, Institute of Strategic and International Studies (ISIS), Kuala Lumpur.
Snoodgrass, Donald. (1980). Inequality and Economic Development in Malaysia, Oxford University Press, New York.
Taliercio, R. Jr. (2004). ‘Administrative reform as credible commitment: The impact of autonomy on Revenue Authority performance in Latin America’, World Development, vol. 32 (2):213-232.
Wildavsky, Aaron. (1986). Budgeting: A Comparative Theory of Budgetary Processes. New Brunswick: Transaction Books