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CHAPTER 1: INTRO TO PUBLIC SECTOR - Coggle Diagram
CHAPTER 1:
INTRO TO PUBLIC SECTOR
DEFINITION
any entities established under the act of parliament
any entities own by central, state and local govt.
OBJECTIVES
provider of public goods
manager of public resources and public goods
as economic and social machinery
CHARACTERISTICS OF PSA
OWNERSHIP/STAKEHOLDERS
owned by the constitute(eg parliament, Auditor General)
OPERATIONAL FRAMEWORK
within framework of public authorisation and control
major policy decisions made by consensus vote of an elected or appointed governing body
FINANCING METHOD
by taxation and charges
NO DIRECT FINANCIAL INTEREST TO CONTRIBUTORS
taxpayers will not receive proportionate amount as what they invest or pay to the government
ACCOUNTING PRINCIPLES
use fund accting rather than entity accting
focus on administration control of resources and cash control
PLURALITY OF OBJECTIVES
objectives of govt include the political, economical and social objectives to be attained
reflect through teh setting up of diff. ministries with diff. objectives
PRIVATE SECTOR
privately owned and not part of the govt.
e.g.
financial services
law forms
estate agents
newspapers or magazines
PUBLIC SECTOR
composed of org that are owned and operated by the govt
includes federal, state, local or municipal
provide services for everyone
make more money than it spends
e.g.
healthcare
teaching
emergency services
armed forces
COMPONENTS OF PS
Federal
ministries
department
public enterprise
State
State govt
Ministries (for S&S)
Department
Public enterprise
Local
City council
Municipal council
District council
SEPARATION OF POWERS
LEGISLATIVES
power to make new law or to maned/repeal existing laws, to levy taxes / change existing taxes, sanction expenditure of public money
- Federal
Parliament - the lower house, house of representatives (Dewan Rakyat), upper house (Dewan Negara)
-
State
ruler & one house, legislative assembly
EXECUTIVE
Power to formulate policies
Federal
Federal constitution: YDPA / by the Cabinet led by PM
role of executives: PM & all ministries
- State
-by state ruler / EXCO
JUDICIAL
power to hear and determine civil & criminal matters between two parties & to pronouns legality of any legislative/executive act & procedures
ondependent in peforming its functions
vested in superior courts & subordinate courts
RELATIONSHIP BETWEEN FEDERAL & STATE GOVT
LEGISLATIVE POWERS
parliamen
t make laws for the whole or any part of the federation & the laws having effect outside as well in federation (matters in federal list / concurrent list)
state
make laws for the whole or any part of the states (matters in state list or concurrent list)
land matters, public works, local govt, agriculture and forestry, islamic law, public holidays
EXECUTIVE POWERS
federa
l - make laws on all matters approved by the parliament
state
- authority over all matters approved by the state legislature
federation can extend the power to the state matters (eg conducting surveys & collection of statistics
statets must comply to the federal law
FINANCIAL MATTERS
FEDERAL AND STATE REVENUES
each state receive all proceeds from taxes, fees & other sources
federal provide fin. assistant to the state in the form of grants
EXPENDITURE AND FINANCIAL COMMITMENTS
charged expenditure
supply expenditure
development expenditure
BORROWING POWERS
federal
- can only borrow as authorised by federal law
state
- can borrow from federation or a bank (period </= 5y), approved by federal govt
s&s
- can borrow under the authority of state law & has the approval of Bank Negara
MSIAN GOVT GOVERNING SYSTEM
FINANCIAL SYSTEM PROCEDURES
Federal Constitution
Financial Procedures Act
Treasury Instructions
provide guidelines on the issuance of receipts, recording of collections, payment for purchase etc
Treasury Circulars
issued from time to time to provide info. on amendments, approved estimates & detailed guidelines on certain procedures
-
REGULATORY BODY
parliament
treasury
accountant general
auditor general