CHAPTER 1: PAD370

public financial administration describes and analyses the  expenditure of government and techniques used by the government to  finance these expenditure.

Public  financial  administration  also  can  be  defined  based  on  several concepts.. (tick the wrong answer)

Public financial administration involves all levels of government and a few agencies

that present their budget to Parliament or the State Legislative Assembly.

There are FIVE (5) main components of public financial administration.

Indirect  taxes  can  be  used  to  control  spending  on  luxury  goods  and  to

discourage excessive drinking and smoking.

Operating Budget is used for recurrent expenditure such as payment of salaries and stationery.

Development Budget is  used  to  achieve  governments  planning  objectives  such  as  the  revenue

made under Malaysia Plans

Government buys a lot of products and services and there should be proper  methods for purchasing, storing and disposing of goods.

The usual methods used are as below except..

Accrual Accounting is when revenue is recorded when it is received and spending has been made when it is paid.

Treasury prepares the Appropriation bills to be tabled in Parliament.