Pengurusan fiskal pihak berkuasa tempatan yang berstatus majlis bandaraya di zon tengah semenanjung Malaysia

Translated title of the contribution: Fiscal management of local authorities with city council status in central zone of peninsular Malaysia

Norain Mod Asri, Zulkefly Abdul Karim, Norlaila Abu Bakar, Zafirah Husin, Muhammad Harith Hasnan, Muhammad Idris Hamid

Research output: Contribution to journalArticle

Abstract

The uniqueness of the City Council compared with other local authorities is to administer advanced developed areas with high population density and household income, and at the same time can generate more fiscal revenue. However, the demand for local taxpayers on local public goods is increasingly complex from time to time. Hence, good management and governance of the budget are important so that the City Council does not deal with fiscal deficits and prolonged public debt. Hence, this study aims to test the long-run relationship (cointegration) and the causality relationship between revenue, expenditure, fiscal balance and public debt according to the City Council in the central zone of Peninsular Malaysia. Two categories of data are used as aggregate data for all variables, and data based on components of tax revenue, non-tax and non-revenue receipts for revenue variables as well as operating and development expenditure for spending variables. The key findings of the study using an autoregressive distributed lag (ARDL) model show that Kuala Lumpur City Hall and the Shah Alam City Council used the expenditure-revenue hypothesis, while the Petaling Jaya City Council practiced fiscal synchronization hypotheses in the short-run and long-run. In addition, the components of operating expenditures (i.e services and supplies), development expenditure and total expenditures are more likely to affect tax revenue. But for the case of Petaling Jaya City Council, tax revenue also affects the amount of expenses. The new findings of the study suggest that the City Council should improve the efficiency of the allocation of all fiscal instruments, particularly the operating expenses and tax revenue components for future fiscal consolidation purposes.

Original languageMalay
Pages (from-to)81-95
Number of pages15
JournalJurnal Ekonomi Malaysia
Volume52
Issue number1
Publication statusPublished - 1 Jan 2018

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Fiscal
Expenditure
Malaysia
Local authorities
Tax revenues
Revenue
Expenses
Public debt
Fiscal deficit
Cointegration
Household income
Local public goods
Population density
Autoregressive distributed lag model
Aggregate data
Synchronization
Uniqueness
Governance
Long-run relationship
Fiscal consolidation

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Pengurusan fiskal pihak berkuasa tempatan yang berstatus majlis bandaraya di zon tengah semenanjung Malaysia. / Mod Asri, Norain; Abdul Karim, Zulkefly; Abu Bakar, Norlaila; Husin, Zafirah; Hasnan, Muhammad Harith; Hamid, Muhammad Idris.

In: Jurnal Ekonomi Malaysia, Vol. 52, No. 1, 01.01.2018, p. 81-95.

Research output: Contribution to journalArticle

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