Q.
Differentiate the two.
i) Government Operating Expenditure and Government Development Expenditure.
(10 marks, 2012 Q8i)
A.
Ref:
Infrastructure University Kuala Lumpur lecture slides:
Macroeconomics (DBF 106): Government Expenditure at
http://www.slideshare.net/bubuadynn/macroeconomic-government-expenditure-comic
A good comparison of Operating Expenditure and Development Expenditure over the years for Malaysia was written by Tony Pua in his blog at Philosophy Politics Economics on Sunday, OCTOBER 17, 2010 entitled: Budget 2011: Operating Expenditure Explodes Again
Hence, looking at the shrinking proportion of Development Expenditure (31.5% in 2003 to 23.2% 2011) , it seems to show that the government is putting a lot of money in operating expenditure which pays for the operation of ministries, largely as wages and services, rather than investment into infrastructures and innovations.
Refer to Tony Pua's write up here.