Abstract: The Malaysian Federalism is highly centralized in terms of revenue powers, expenditure responsibilities and borrowing powers. Interpreting from the Federal-State fiscal relationship, decentralization is a non-issue in the Malaysian Federalism context. The Federal Government had a very strong commitment in the economic development and transformation of the States. In fact, the Federal government is better positioned to manage social and economic agendas with the good effect of scale economy. Federal-State fiscal relations have however been afilected by the problems of both vertical (Federal-State) and horizontal imbalances (State-State). This is however warranted by negotiations with the State in concerned by directing Federal sponsored development projects, transfer of financial resources (grants and loans) to the States and the setting up National Finance Council (NFC). The issue of fiscal decentralization in the future is likely to be, at best, a series of ad hoc changes and improvements in technical aspects of intergovernmental relationships for public service provisions and their finance.
Publication Year: 2000
Publication Date: 2000-01-01
Language: en
Type: article
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Cited By Count: 10
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