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Expenditure

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I. Introduction According to S. R. Harvey (2004), Public Finance is the branch of economics that studies the taxing and spending activities of government. Public finance refers to government activities including taxing, spending, and budgeting. Government controls the public activities to ensure stabilization of economic. In order to maintain the economic stabilization in the country, there must be budget. Means that budget is important for the government to allocate the expenditure of the country. Budget can be defined as an estimation of income and expenditure for a set period of time. Furthermore, budget is a microeconomic concept that shows the tradeoff made when one good is exchanged for another. . According to Ekstein (1973), budget can been define as detail statement of income and expenditure that have been made or expected to be made. There are several function of a budget which is as a policy tool and instrument. Means that, budget is a tangible of a policy decision whereby budget is a means of establishing policy that been accomplished through the budget’s allocation of government resource. Besides that other function of budget is as a management tool whereby almost all government activities are funded through the budget and since the budget is a continuous process it is an effective tool for the public official because it provides an effective management device at every stage of government activity. Means that, any of the activity planned by government will be reflected based from the budget. As example, in Malaysian budget the governments have their annual plan that been proposed projected revenue and propose the expenditure. It consists of revenue and expenditure for 1 year as a short term plan. There is two type of budget which is operating budget and development budget. Besides that, in budget there are two component of budget which is public expenditure and public revenue. Public Expenditure refers to the government expenditure. It is incurred by the Central and State Governments. The public expenditure is incurred on various activities for the welfare of the people and also for the economic development aspect, especially in developing countries whereby to the way of government use their expenditure to the people. As example of the government expenditure is in term of rural development, industrial development and increasing administration cost. All of these activities it may include the government expenditure. After Malaysia became independent from the British rule during 1957, the rural development has always been the most important agenda of national development. There are many strategies and programmers were introduced by government to promote the well-being of rural people ranging from development of the agriculture sector, rural industrialization, resettlement schemes, provision of public facilities and infrastructure to human and community development. In Malaysia in order to develop the rural area there a lot of program to been done by government which is during Tun Razak the program of FELDA. Yet now during our prime minister Datuk Seri Najib Tun Razak have plan a lot of strategies to improving rural development by produce the Rural Development NKRA (RD NKRA) whereby it formerly known as the Rural Basic Infrastructure NKRA which means it’s directly supports the Vision 2020 goal to becoming a high-income nation by transforming rural areas into vibrant economic canters.

II. Research Objective

The objective of this research is to identify the reason for the growth of the public expenditure in Malaysia at the rural development. The improvement that been made by government in order to fulfill the need and demands people in the rural area. Besides that to find the government focus on supporting Malaysia’s rural population by upgrading facilities and infrastructure at rural development.

III. Research Question Based on this research question is to investigate what are the main reasons for the growth of the public expenditure in Malaysia at the rural development. Means that, in term how governments allocate the expenditure in rural development. Besides that to investigate the improvement made by government in order to improve the infrastructure and facilities in the rural area.

IV. Methodology

To compete this research, there must be use some methodology as our finding to complete these mini research. Secondary resources have been use in the mini research. It has been completed by refer to some article and journal which is:

Article i. Rural Development in Malaysia by Ibrahim Ngah ii. Development and Change in Rural Malaysia: The Role of the Village Development Committee by Shamsul A. B

Website i. Government transformation programs. Retrieved from Improving Rural Development website: http://www.pemandu.gov.my/ ii. Kementerian Kemajuan Kawasan Luar Bandar dan Wilayah.Portal Rasmi Kementerian Kemajuan Luar Bandar dan Wilayah.
Website http://www.rurallink.gov.my/

Newspaper i. More focus on rural infrastructure. (2012, August 11) By News Straits Times.

V. Finding Rural development can be seen as a process of change that been carried out deliberately for the betterment of rural people. This process of change is continuous and yet it is essentially dominant aims in order to achieve certain goals and to solve problems of the rural areas so that they can fulfill needs for the people in rural development. Improving the provision of basic infrastructure for the people living in rural areas is another of the Government’s priorities. Access to basic infrastructure is a fundamental right of all Malaysians. Water, electricity, road and housing infrastructure are important for the population’s health, their socio-cultural advancement and are part of the essential foundations of the Nation’s economy. Based on the rural development there are two phrases will be taken in order to implement these program which is Government Transformation Program (GTP) 1.0 and 2.0 and it cost over RM5 million to implement these programs. The Rural Basic Infrastructure National Key Result Area (RBI NKRA) accomplished much in the GTP 1.0 introduce in year 2010 until 2010 with the Ministry of Rural and Regional Development scoring a number of successes in terms of improving and enhancing the lives of Malaysians in rural communities. The development of infrastructure has improved quality of life and enabled greater access to markets, which will in turn serve to redress socio-cultural and socio economic disparities. There are 4.5 million Malaysians may have benefited from these GTP 1.0 program. Besides that, in these GTP programs the major aims is that needs to be develop in rural area are by increasing access to paved or gravel roads, increasing access to clean or treated water for the rural people, ensuring 24-hour access to electricity in the rural area and yet to building and restoring houses for the rural poor people. Whereby, in these GTP 1.0 program the increased access to paved or gravel roads it may test for this initiative was measured by the percentage of Malaysians living within five kilometers of a paved, gravel road and laterite roads which means by the end of 2012, some 3,147 kilometers of road was completed under this initiative and yet the following percentages of Malaysians now meet the standards set that been planned. Furthermore, in term of increase access to clean or treated water, by owning due these GTP 1.0 by the end 0f 2012, there are 310742 homes in rural area will have get the access with clean water. As example, in Lubok Antu Phase Regional Water Treatment Plant, whereby it will bring cleans water to 5,000 rural villagers by early 2013. Yet, similar with the clean water, having 24-hour access to electricity also the most important part for the people in the rural area in order to get the quality of life. By 2012 they may ensure 93712 houses has been connected these 24 hours electricity. Besides that, in GTP 2.0 it may take in the year 2013 until 2015 whereby the focus of the NKRA will no longer be on rural basic infrastructure alone, but will instead take on the more complete development task of developing rural areas. The aims of these GTP 2.0 is to complete the infrastructure work begun previous in the GTP 1.0 and in order to enhance the economy of the rural areas to ensure that rural people to enjoy similar opportunities as those in the city. Moreover, other mission in this GTP 2.0 is by enhancing rural areas via the 21st Century Village (CV) Programs and Driving Youth Entrepreneurs. In these GTP 2.0 program instead they wanted to complete the infrastructure that work begun in previous plan there are a lot of improvement been made in these P 2.0 programs. Whereby, by achieving the road target requires building and upgrading 6339km of road in Malaysia which is 2618km may new upgrade roads between 2013 to 2015 in peninsular and 1007km in Sabah and 1514 in Sarawak. There are a lot of improvement been made thru these GTP 2.0 program. And yet is same goes to the initiative of access to clean or treated water. By the end of the GTP 1.0, over 99% of Peninsular Malaysia residents possess access to the clean or treated water, meanwhile 79% and 90% of Sabah and Sarawak residents respectively enjoy the same access. Given the challenging importance of clean water, the NKRA aims to raise the latter two percentages to 95% by 2015. This will achieved via the building new connections and alternative water supply to rural areas, and upgrading existing treatment systems in urban and rural areas to cater for expansions. Moreover based on these programs also it include the new program that been introduced to the people whereby 21st Century Village Programs. Based on these programs aim of objective is to encourage youths in rural area to remain in their village and to work and start businesses in their area. Based on this,it may cover several number of economic subsectors that it may include agriculture sector, tourism sector, plantations and also cottage industries as their income and at the same time it can attract people outside to came to their area. There is an estimated that over 37,800 households yet also 189,000 persons is expected to get this benefit from this GTP 2.0 programs. In these 21CVs programs also it will be based on the villages that have available land and the villages with successful cooperatives operating businesses whereby the villages that have potential and unique resources that can be developed into a sustainable rural business.

VI. Discussion and conclusion As a conclusion it can be conclude that there are a lot of improvement been made by the government in order to fulfill the necessities need by the rural people. There are a lot of different made by the government to develop the rural development since our country get independent by the British 1957. Rural development always had been the most important agenda of national development. According (Ibrahim Ngah, 2010) a large scale and integrated approach of intervention was undertaken during the NEP period of 1970-1990, which addressed both the improvement of the living conditions of the existing villages and the relocation of the rural populace to new land development schemes. It same goes to our new government transformation in order to improve the rural develop by step by step to ensure that the rural development run smoothly and the people in the rural area may get the enjoy a better standard of living The process of change is continuous and yet it’s essentially have the aims to achieve certain goals and to solve problems that been face by the people in rural areas. Based from this process it may induced change that be made by the state itself and from this rural development activities can be covered by several elements such as planning, implementation, monitoring and involved multi-disciplinary action such as state agencies, the private sector, NGOs and the general public in order to ensure these rural development can be success and give a lot of benefit to the people. In term of the expenditure been used there is a sum of RM 5 billion was allocated to improve these rural development program. Based on this amount RM1.8 billion was provided for the rural road program and also village link road project road project. Means that in these programs a road network of 1350km will be constructed in Peninsular, Sabah and Sarawak Besides that, other RM2.1 billion was allocate for the expansion of potable water supply to the people at the rural area may get the facilities of getting a clean water supply Moreover, there is RM1.1 billion was been allocate in term of electricity supply whereby people in rural area also may get 24 hours electric supply. Whereby RM590 million was expended benefiting 9640 houses in these rural area including Sabah and Sarawak. VII. Reference Kementerian Kemajuan Kawasan Luar Bandar dan Wilayah. (n.d.). Portal Rasmi Kementerian Kemajuan Luar Bandar dan Wilayah. Retrieved , from http://www.rurallink.gov.my/

More focus on rural infrastructure. (2012, August 11). News Straits Times. Retrieved from http://http://www.nst.com.my/more-focus-on-rural-infrastructure

Ngah, I. (2010, December 1). Rural development in Malaysia. UTM Sustainability Research Alliance. Retrieved , from http://www.sustainability.utm.my/

Performance Management & Delivery Unit (PEMANDU), (2011). Goverment transformation programs. Retrieved from Improving Rural Development website: http://www.pemandu.gov.my/

Shamsul, A. (n.d). Development and Change in Rural Malaysia: The Role of the Village Development Committee .…...

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