THE consolidated public sector’s (CPS) current balance is expected to rise by 14.9% to RM110.4bil from RM96.1bil in 2021.
The growth is led by higher non-financial public corporations’ (NFPC) current surplus, led by a significant boost in revenue driven by higher commodity prices.
The consolidated development expenditure will rise by 39.4% to RM174.4bil from RM125.2bil in 2021, in line with higher investments, particularly by the NFPCs.
Therefore, the overall deficit of the CPS is estimated to rise to RM92.9bil, thereby making up 5.4% of gross domestic product (GDP) in 2022.The CPS consists of general government units, namely federal, state and local governments, Federal Statutory bodies and NFPCs. The CPS gives an overview of the financial performance of these units.
General government revenues are projected to grow by 17.9% to RM339.1bil in 2022, led by higher Federal Government (FG) revenue collection supported by higher commodity prices and improved economic activities, including financial services.
The government’s operating expenditure (OE) is expected to rise by 20% to RM327.3bil, mainly because of higher FG’s OE. The current surplus will be RM11.8bil compared to RM16.9bil a year earlier.
The consolidated revenue collection of state governments in 2022 will rise by 9% to RM31.2bil versus RM28.7bil in 2021. Of this, 78.1% is from state generated revenue and the balance comprises transfers and grants from the FG.
The largest share of the consolidated state-generated revenue are from Sarawak, Sabah, Selangor, Terengganu and Johor, making up 80.7% or RM19.7bil.
The report said non-tax revenue is projected at RM13bil or 41.6% of the consolidated revenue. The main components are petroleum royalties at RM4.5bil, investment income at RM2.8bil and land premiums at RM2.2bil.
Non-revenue receipts are expected at RM8.5bil, which are mainly grants from FG at RM6.8bil.
The consolidated state government’s OE is projected to increase by 5% to RM15bil mainly due to higher transfers and fixed charges, as well as suppliers and services outlays.
The consolidated state government’s financial position is expected to record a current surplus of RM16.3bil or 52% of total consolidated state revenue.
NFPCs continue to adopt new norms and have demonstrated reliance and readiness to thrive in a challenging economic recovery environment.
Several economic subsectors such as oil and gas, logistics, healthcare including information and communication technology benefited from current global uncertainties.
NFPCs’ revenue is expected to record a higher growth of 32.8% to RM517bil versus RM389.4bil last year. This makes up 30.2% of GDP and mainly contributed by the O&G sub-sector, led by global oil price surges.
NFPCs’ total expenditure for 2022 will rise to RM516.6bil or 30.2% of GDP.