Pengurusan Fiskal Kerajaan Negeri di Semenanjung Malaysia

Norain Mod Asri (), Zulkefly Abdul Karim (), Fariza Ahmad () and Raihana Ramli ()
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Norain Mod Asri: Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia (UKM) Bangi, Selangor.
Zulkefly Abdul Karim: Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia (UKM) Bangi, Selangor.
Fariza Ahmad: Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia (UKM) Bangi, Selangor.
Raihana Ramli: Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia (UKM) Bangi, Selangor.

Jurnal Ekonomi Malaysia, 2015, vol. 49, issue 2, 97-120

Abstract: The increase of fiscal deficit and public debt size has motivated to study the causes of fiscal imbalances so that fiscal adjustment and consolidation can be done. Thus, this study aims to test the cointegration (long-run relationship) and direction of causal relationship between revenues and expenses by state government in Peninsular Malaysia using aggregate and main component data of revenues and expenses. An autoregressive distributed lag model (ARDL) is used to examine the cointegration and causal direction relationship between the revenues-expenses. The findings show that most of the state governments formulate revenue collection before making spending decisions in the long term. This result supports the revenue-expenditure hypothesis, in which revenue collection is determined before the spending is determined. In addition, management expenditure components are also viewed more likely to be influenced by the revenues (in terms of total and components data) compared to development spending components. Policy implications of this study clarifies that understanding the relationship between revenue and public expenditure is very important for the government to avoid prolonged fiscal deficit and to enable the government to maintain the achievement of targeted budgets.

Keywords: Public spending; autoregressive distributed lag (ArDL) model; public revenue; revenue-expenditure hypothesis; state government (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:49:y:2015:i:2:p:97-120

DOI: 10.17576/JEM-2015-4902-09

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