Where Does Malaysia Get Money For Its Budget [Infographic]

Where Does Malaysia Get Money For Its Budget [Infographic]

Budget 2022 is set to be tabled soon, and by all predictions it’ll be on the leaner side of spending. With this in mind, have you ever wondered where the Malaysian government gets the money to spend (aside from oil revenue)?

Budget 2022
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Here’s how we did for Budget 2021

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227 money-budget
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  • Everyone knows we’re a petroleum based economy

  • Petronas paid the federal government RM34 billion in dividends.

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  • Petroleum and gas royalties bring in another RM4.2 billion.

  • Oh, and another RM8.5 billion from petroleum taxes.

  • In total, that’s 29.7% of our federal revenue.

  • In comparison, Malaysians paid RM36 billion in income tax.

  • Companies paid RM59 billion.

  • Indirect taxes contributed RM74 billion. This includes export duties, sales tax, service tax, excise duties, etc.

This is what the overall breakdown looks like
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Income tax
13.7%

Non-tax revenue
18.2%

Company tax
22.4%

Petroleum
17.7%

Indirect tax
28.1%



Most of this revenue was eventually spent on:

73.3%

Operating expenditure

21.4%

Development expenditure

5.3%

COVID-19 fund

Budget 2022 announcement is around the corner, what do you hope to see from it?

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