InMalaysia,federal budgets are presented annually by theGovernment of Malaysia to identify proposed government revenues and spending and forecast economic conditions for the upcoming year, and itsfiscal policy for the forward years. The federal budget includes the government's estimates of revenue and spending and may outline new policy initiatives. Federal budgets are usually released in October, before the start of thefiscal year. All of the Malaysian states also present budgets. Since state finances are dependent on money from the federal government, these budgets are usually released after the federal one.

The federal budget is a major state financial plan for the fiscal year, which has the force of law after its approval by the Malaysian parliament andsigned into law by theYang di-Pertuan Agong.

Revenue estimates detailed in the budget are raised through theMalaysian taxation system, with government spending representing a sizeable proportion of the overalleconomy. Besides presenting the government's expected revenues and expenditures, the federal budget is also a political statement of the government's intentions and priorities, and has profoundmacroeconomic implications.

The budget is announced in the Dewan Rakyat (House of Representatives) by theMinister of Finance, who traditionally wearsBaju Melayu while doing so. The Budget is then voted on by the House. Budgets are aconfidence measure, and if the House votes against it, the government can fall, although it has never happened. The governing party strictly enforcesparty discipline, usually expelling from the party caucus any governmentMember of Parliament (MP) who votes against the budget. Opposition parties almost always vote against the budget. Since 2008, the opposition bloc used to prepare a complete alternative budget and present this alternative to the Malaysian people along with the main budget. In cases of minority government, the government has normally had to include major concessions to one of the smaller parties to ensure passage of the budget.

Malaysia follows the conventions of theWestminster system. For example, theprime minister must have the support of a majority in theDewan Rakyat (House of Representatives), and must in any case be able to ensure the existence of noabsolute majority against the government. In relation to the budget, that requires that if the House fails to pass the government's budget, even by one ringgit, then the government must either resign so that a different government can be appointed or seek aparliamentary dissolution so that new general elections may be held to re-confirm or deny the government's mandate.

The process of creating the budget is a complex one which begins within the working ranks for the Federal Government. Each year, the various departments and agencies that make up the Government submit what are called 'The Main Estimates' to The Treasury Board Secretariat. These documents identify the planned expenditure of each department and agency, linking these proposed expenses to programs, to objectives and ultimately to the priorities of the current ruling Government. The Treasury Board Secretariat combines these budget estimates and compile an initial proposed budget. From there, the Cabinet and Prime Minister's Department adjust the budget based on a series of economic, social and political factors. In reality, decisions are usually made with the primary intend of re-election and so often include advantages for key regions and lobby groups.

The government reserves the right to submit "supplementary supply bills", which add additional funding above and beyond what was originally appropriated at the beginning of the fiscal year. Supplementary supply bills can be used for things like disaster relief and to update its agencies' spending totals for the current financial year and report any governmental re-organisations.

The Federal Government’s revenue is classified into four general categories, namelytax revenue,non-tax revenue, non-revenue receipts and revenue from the Federal Territories.

Tax revenue is classified intodirect tax revenue andindirect tax revenue.

Direct tax revenue includes revenue from:

• income tax and supplementary income tax (individual, company, petroleum, withholding and cooperatives);
• estate duty;
• stamp duty;
• real property gains tax (RPGT);
• Labuan offshore business activity tax; and
• miscellaneous direct taxes.

Indirect tax revenue includes revenue from:

• Goods and Services Tax (GST);
• export duties;
• import duties;
• excise duties;
• levies; and
• miscellaneous indirect taxes.

Non-tax revenue consists of:

• licences, registration fees and permits: inclusive of all charges imposed on the granting of rights to individuals, corporations, businesses including petroleum royalty, and other enterprises as well as motor vehicle licences for purpose of regulation or control and levy on foreign workers;
• service fees: inclusive of receipts from services rendered by the Federal Government to the public;
• proceeds from sales of goods: inclusive of receipts from the sales of physical assets owned by the Government including lands, buildings, office equipments, storage facilities and the sale of miscellaneous goods to the public;
• rentals: inclusive of rentals from land, buildings, vehicles and machineries;
• interests and proceeds from investments: inclusive of proceeds from sale of investments, dividends earned from bonds or shares (PETRONAS dividend, Bank Negara dividend, Khazanah dividend), bank interests and interests on loans granted by the Government;
• fines and penalties: inclusive of out-of-court settlement fees as well as fines and forfeitures;
• contributions and compensations received from home and abroad;
• income from exploration of oil and gas: income from petroleum operation Malaysia-Thailand Joint Authority (MTJA); and
• other non-tax revenue.

Non-revenue receipts include:

• refunds of expenditures: inclusive of payments in previous years and refunds of salaries arising from resignations and training expenses, trust fund refunded and unclaimed funds; and
• inter-departmental credits: inclusive of transfer of funds between ministries or departments for services rendered between Government agencies, reimbursements of the Government’s contributions under the Employees Provident Fund Scheme and contributions from Government departments, statutory bodies or Government owned enterprises.

Revenue from the Federal Territories consist of tax and non-tax revenue including receipts from licences and permits, premiums, quit rent, sale of assets, rentals, service fees and entertainment duties.

Official sources^{[permanent dead link]}

(In millionMYR)

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These tables are in millionMYR.

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These tables are in millionMYR. The budget for the 2016 fiscal year (also demonstrating the basic budget structure) can be found below.

1960s

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2000s

2000 ·2001Archived 23 December 2018 at theWayback Machine ·2002Archived 23 December 2018 at theWayback Machine ·2003Archived 22 December 2018 at theWayback Machine ·2004^{[permanent dead link]} ·2005Archived 10 July 2019 at theWayback Machine ·2006^{[permanent dead link]} ·2007Archived 5 July 2016 at theWayback Machine ·2008^{[permanent dead link]} ·2009^{[permanent dead link]}

2010s

2010Archived 10 July 2019 at theWayback Machine ·2011^{[permanent dead link]} ·2012Archived 9 August 2017 at theWayback Machine ·2013Archived 22 December 2018 at theWayback Machine ·2014Archived 22 December 2018 at theWayback Machine ·2015Archived 23 November 2018 at theWayback Machine ·2016Archived 27 January 2018 at theWayback Machine ·2017Archived 24 October 2020 at theWayback Machine ·2018Archived 13 October 2020 at theWayback Machine ·2019Archived 18 February 2020 at theWayback Machine ·

2020s

2020Archived 24 September 2020 at theWayback Machine

• Taxation in Malaysia
• Malaysian public debt

International:

• Government budget by country

• Ministry of Finance

• "Belanjawan 2015: Defisit, hutang dan perbelanjaan kerajaan – Amin Ahmad - The Malaysian Insider". Archived fromthe original on 4 March 2016. Retrieved23 October 2015.

• Malaysian budgets
• Economy of Malaysia
• Government of Malaysia

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