Thursday, December 8, 2011

3Q 2011 Federal Government Budget

After last quarter’s uncharacteristic surplus, things are now a bit more normal (RM millions):


Revenue collection continued at a sustained high pace – don’t be deceived by the seeming drop, we’re still looking at double digit annual growth (log annual changes):


The fiscal deficit increased largely because expenditure growth was even faster. Just a note though – based on the current trend, revenue this year will beat even the latest estimate from the 2011/2012 budget by at least 5%. Expenditure however should hit the budget estimate on the nose, at about RM220 billion.

Obviously with the deficit widening again in 3Q, we’ll be looking at a higher debt position. Check back on that soon.

Technical Notes:

Data on Federal Government revenue and expenditure from BNM’s October 2011 Monthly Statistical Bulletin

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