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Public Financial Management - Coggle Diagram
Public Financial Management
Roles of Government
Institutional
Adtess MARKET FAILURE
Sources of market failure
Public goods/ social goods
Characteristics
1) Non-excludable
2) Non-rival
Mixed goods
Excludable but non-rival
eg: non-crowded tolled highways
Non-excludable but rival
eg: congested Federal Highways
Imperfectly excludable/ partially non-rival
eg: wducation & health
Externalities
Imperfect competition
Direct control
Indirect control
eg: TNB
Incomplete Information
Income Distribution
Taxes
Public goods
Fair distribution
Transfer payment
Indirect assistance
Direct assistance
Ensuring ECONOMIC GROWTH
Expenditure in PRODUCTIVE INVESTMENT
eg: education
Expenditure on INFRASTRUCTURE
Eg: airport
R&D
Incentive to PRODUCTIVE SECTOR
Economic Stabilization: Fiscal Policy (use of taxes & expenditure by the central government)
Eco TOO FAST eg high inflation: CONTRACTIONARY FISCAL POLICY
INCREASE TAX
REDUCE private spending
or both
Eco CONTRACTS SLOW eg high unemployment: EXPANSIONARY FISCAL POLICY
REDUCE tax
INCREASE private spending
OR both
Organizations in Public Sector
The government sector
Federal Government
state government
Local Government
City halls
municipal
district councils
Statutory bodies
UiTM
MARDI
-RISDA
-KEJORA
-LHDN
EPF
-SOCSO
-LTAT
NFPE/ SOEs
-TNB
-PETRONAS
KTMB
MAS
Link between PUBLIC SECTOR & ECONOMY