Q1) 5 FACTOR THAT INFLUENCE DECISION

IN PUBLIC BUDGETTING IN MALAYSIA

SHAMER B. OTHMAN
PREPARED FOR: MADAM NURULAINI BT
ZAMHURY

COMPREHENSIV
E

ANNULARITY

FACTOR

CLASSIFICATION
AND CLARITY

ACCURACY

Legitimacy and
Prior
Authorization

INTRODUCTION

Public budgetis a plan of expected incomes and

expenditures for the upcoming fiscal year, which is a
twelve-month period that may or may not correspond to the
calendar year (National League of Cities, 2013)
revenue that been collected by government in one year
through different medium will be spend on following year.
usually government will spend through policy

Annularity
Annularity in public budgeting mean that
each budget should span a single fiscal
year (Allen Schick, 2003)
The budgeting year that is make it must
standardized with government in long
term planning like planning for five years.

comprehensiveness
Comprehensive of the budget means that the
budget must encompass all the expenditures,
revenues, borrowing and other financial activities of
the government.
This creates a framework that promotes sound
appraisal of competing policy options, and efficient
budget planning and execution
Example, government of Malaysia wills priority
towards the government operating expenditure first
before make policy that giving towards public. This
is because the public servant is machinery of the
government to carry out task.

classification and specific

Classification and specific mean that every
public budgeting has to be classifying properly
and have specific in term of the objective.
ensure the budgeting must giving first priority
for that the important spending and must
determined the consequences that spending
are first on top.
DEB as one major player to focusing on the
rural development and agriculture to fulfill the
government objective to reduce the poverty
level and rearrangement the society.

accuracy
accuracy mean the budget should
accurately record transactions.
all revenues and spending that show-off in
budgeting must be appearing even that
only the estimate by public agencies.
Example, ministry of education got budget
related to build a new school. Thus, every
transaction between them and contractor
must be keep to be audit by the audit
department later.

Legitimacy and Prior

Authorization
Legitimacy and prior authorization in public
budgeting mean that public funds should be
spent as authorized in law
Decision-makers that can change policies
during implementation must take part in and
agree to the original policy decision, whether it
is made during the process of formulating the
budget or at some other time. Example, if it is
authorized to spend 5 billion to develop a
school around Malaysia, so only 5 billion can be
use and cannot spend towards other matter.

CONCLUSION
As conclusion, this all factor must be
fully follow by every people who work
in government sector in order to get
more accurate in making the
decision.

references
http://www.oecd.org/gov/budgeting/
43494591.pdf
http://lib.kedah.uitm.edu.my/psblib
rary/notes/am110/layout/subject%20m
aterial/handouts/dpa/PAD%20370/h1.p
df