KUALA LUMPUR, Oct 10 — The Federal government’s revenue has increased by 25.9 per cent or RM60.61 billion to RM294.36 billion in 2022, compared to RM233.75 in 2021.
According to the Auditor-General’s (AG) Report on the Financial Statements of the Federal Government 2022 released today, the final allocation for operating expenses approved was RM236.97 billion, while operating expenditures amounted to RM292.69 billion.
“Tax collection increased 20.2 per cent to RM208.77 billion, compared to RM173.70 billion in 2021.
“The sharp increase (in tax collection) included petroleum income tax rising by RM11.85 billion to RM23.42 billion, corporate income tax increasing RM2.30 billion to RM82.13 billion and individual income tax expanding by RM6.74 billion to RM33.78 billion,” the report said.
According to the report, non-tax revenue increased 55.7 per cent to RM79.61 billion in 2022 compared to RM51.12 billion in 2021 due to the profit and interest earned from investments, which jumped 66.3 per cent to RM58.22 billion
The increase was due to higher dividends paid by Petroliam Nasional Bhd, amounting to RM50 billion, compared to RM25 billion in 2021, apart from an increase in petroleum royalties to RM5.98 billion.
“RM1.66 billion in excess revenue was moved into the Development Funds Group, making actual operating expenditures in 2022 at RM294.36 billion.
“Grants and fixed charges were recorded as the highest expenditure, amounting to RM170.243 billion or 57.8 per cent of the total operating expenditure,” it said.
The report added the total development expenditures of ministries and Federal departments stood at RM71.57 billion, or 104.5 per cent, compared to the approved allocation, including development expenditure of RM6.068 billion imposed during the Accounts Payable period.
“These expenditures were at the Ministry of Finance (MOF) level and involved the channelling of allocations to DanaInfra Nasional Bhd, Prasarana Malaysia Bhd, and Urusharta Jamaah Sdn Bhd,” it said.
MOF recorded the highest expenditures at RM120.17 billion or 40.8 per cent of the Federal government’s 2022 operating expenditure, having increased RM47.13 billion or 64.5 per cent compared to 2021’s RM73.05 billion.
“The MOF’s sharp increase (in expenditure) was attributed to petroleum products subsidies amounting to RM45.18 billion, an increase of RM35.16 billion or 350.8 per cent compared to 2021’s RM10.02 billion.
“Subsidy expenditure totalled RM55.44 billion, an increase of RM42.31 billion or 322.1 per cent compared to 2021’s RM13.13 billion,” it said.
The auditors recommended the Federal government improve operating expenditure discipline, strengthen revenue-generating efforts, and monitor loan repayment commitments.
These steps are vital to increasing excess revenue to fund development and reduce dependency on new loans.
The auditors also recommended the Federal government funds in the Development Fund Group be used for projects under Malaysia’s Five-year Development Plan.
“Expenditure intended to be channelled to companies for the repayment of loans must be monitored to ensure it does not continue to rise in the future,” it said.
— Bernama
