Federal government’s deficit rises in first quarter 2013


The federal government posted a RM14.9bn deficit for the first quarter of 2013 compared to a RM5.8bn deficit for the first quarter of 2012.

Source: Ministry of FInance
Source: Ministry of Finance

For the first quarter of 2013, the increased expenditure of RM49.9bn was due to higher emoluments (RM14bn), transfers to statutory bodies (RM7.7bn) and state governments (RM1.2bn). The higher expenditure was partly due to bonus payments to civil servants announced at the end of 2012 and higher allocations for road maintenance to state governments in the run-up to GE13. BR1M, incentive payments, financial assistance to students and book vouchers amounted to RM3.5bn.

Source: Ministry of Finance
Source: Ministry of Finance

The fiscal deficit for the whole of 2012 of RM42.0bn amounted to 4.5 per cent of GDP. 

For 2013, Najib says he will reduce the deficit to 4.0 per cent of GDP. 

But one research house said it would be difficult for the government to meet this target due to the handout programme.

For the first five months of 2013, the Edge reported that the fiscal deficit was already 4.8 per cent of GDP.

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Gerakan K

@eng hock:

Hello please wise up. No merger will happen. Do you believe MCA wanted to give away its billion asset to anyone ???

The best bet for MCA is to join pakatan before next GE.

Gerakan K


You know what, your idol Anwar won the opposition leader post again !!! And there were lots of celebrations for him. The black 505 celebration, right ??? You must be very happy now.

Gerakan K

@Prinyanka, @HungryGhost, @zam zam

How to buy a house in Penang if the sellers are not raising the price like no tomorrow ??? $400 000 affordable housing is the best thing you can get from ‘kucing kurap’ management. Forget about the high-end $5 million condos. It is for wealthy Japanese, Chinese (from China)

eng hock

I am waiting for Gerakan-MCA-PPP merger and 1st agenda for them is to build truly malaysia low cost homes and may be Gerakan K can put his efforts to turn this into reality rather than may be Yang etc can buy you a drink (pardon if you don’t take liquor we can buy you air bandung instead).
Game or not ?

Ed G

With so many civil servants in the government’s payroll, shouldn’t they be performing many tasks by themselves instead of liberally engaging contractors or outsourcing many of them? Also, with so many civil servants, I am sure that they would have ample time to look and bargain for the cheapest purchases from most reliable suppliers. So why the government has time and again getting the worst deals at logic defying pricing (as highlighted by the AG’s report for decades) is everyone’s guess.


Privatisation under BN did not reduce civil servant headcount, but increase it as BN government has to absorb unemployed local graduates that studied courses irrelevant to market needs.

Just need to look at Greece to understand its repercussion.


gelakan k
you entitle for BRIM1?
salivate over the 500 bucks pls.

Andrew I

He’ll salivate for much less.


And he thinks that he had won. Hahaha……


Reading at the report by ‘The Edge’,it seems to be scary of our country’s economic conditions.
Is the govt prudent by these unnecessary handouts(especially during the coming of GE13)?
I still remember the DPM saying that the govt can afford to pay the BRIM and even boosting of raising it to RM1,200(from RM500).Now looking at the current situation(which is seemingly deteriorating),I wonder how the govt can reduce the deficit by end 2013?


That is how cheating and conning get them through this GE

najib manaukau

My mate Anil, You forgot to factor in one thing. This egregious Najib and Umno know that when Malaysia goes bankrupted they wont be around to worry about the problem. Who will have to deal with the problem ? When these problems come the Malaysians will put the blame on the government in power then and not Umno for sure. One thing for sure who will really be in trouble when the inevitable has to be implemented, austerity, the first without a doubt will be the civil servants and who are the majority civil servants. And who are they ?… Read more »

don anamalai

Meanwhile the Ringgit has slumped to a 15-year low against the Singapore dollar. The Singapore dollar rose to 2.5479 against the ringgit, the highest since early 1998, at the height of the Asian financial crisis.

Can Bank Negara explain why this is happening if the Malaysian economy is good?


Najib’s much more talk than real way of management call coming full circle as reality bites. its only going to get worst.


Deficit rises accordingly with the barang naik phenomenon ?

Yesterday i went to have laksa asam and it costs RM3.50 (small bowl). One has to go for large bowl at RM4 to really fill the stomach.


Char Hor Fun with egg costs RM5 one plate at a kopitiam, Lintang Batu Lancang. Dulu RM3.80. How to enjoy Penang hawker food?

Zam Zam

ori-masestro street food masters like keng kwee chendol ceo tan also adopts genie-ciefficient startegy by operating two cataegory of chendol stalls in penang :

1) traditional keng kwee lane roda 3 chendol at RM2/bowl to cater for those with less “bin-chui” conscious consumers

2) more upmarket chendol at RM3.80/bowl at ground floor prangin mall to cater for kimgrarishstarybuckish-like customers.

No wonder these days most hawkers learn the wall-street approach serving different niches that in the long run to cost high inflation that only deflat our pockets of most in the public.

don anamalai

Deficit is growing although BN has told us that they will reduce it.
The impact of rising deficit has never been explicitly reported and explained to rakyat by the mainstream media, giving a false sense of security towards the fiscal position of the nation.
With the Umno assembly coming up, chances are more spending is needed to please those ketua bahagian now that Najib’s position is a bit shaky too.


The lynch pin lies in the future income stream which may dry up or reduce due to factors beyond Malaysia control. That day is bound to happen eventually notwithstanding the fact that most of the mega projects are deemed non productive meaning no income generation potential. Classical one is the MRT in competition with light rail, monorail & kommuter. No wonder Malaysia has the second highest leakage and capital flights. Interesting time!

semuanya OK kot

MRT was selected precisely because it is the most expensive. It is at least 1000 times more expensive compared to BRT. If you doubt this, ask yourself why the Transport Ministry is not in charge. We are heading for more torture before the doom of Malaysia, e.g. nuclear energy.

TL Man

The devil’s Principle: Personal Bank Account more credit the better for the Nation’s Bank Account more debt the better.


Malaysia with one of the highest number of civil servants per population is still spending on generous bonuses like there’s no end to tax revenue & national assets like oil & gas. It looks like our PM doesn’t learn the hard life lessons of prudent Milo tin saving & 10 cent spending but splurging at a moment of Gangnam Sai shiok-shiok inspiration. The last GE13 was one extremity of spending our blood,sweat & tears public money without much thinking & responsibilities – e.g. 1 BN flag at roadside speedily taped to MPPP railing was (allegedly) paid Rm100 to (alleged) gangsters.… Read more »

don anamalai

Too many civil servants cost tax payers’ lots of money.
Imagine the amount of unnecessary spending on BN t-shirts/caps/flags for these people each time the BN ministers buat lawatan ?

ps: no offence to those crony-puteras who get contract to supply those items.

Gerakan K

Reward time for voters. BR1M for you !!!

Andrew I

Also free nasi lemak at all my mini markets nationwide.


They will start conning again come GE 14

Andrew I

Don’t forget your ic. I give you free mah.