Analysis of Budget 2010 Malaysia

1. INTRODUCTION

1. DEFINITION OF BUDGET

Want to achieve your goals in life? With many of your goals, success will be dependent upon monetary means. To be successful in reaching these goals, the basic starting point will be creating a budget and living within that budget. A budget is the most effective financial management tool available to all of us. Whether we are earning thousands of dollars or hundreds of thousands of dollars annually, a budget is the most fundamental part of achieving our goals in life. It is extremely important to know how much money we have to spend and where we are spending it.

Budget is a plan or schedule adjusting expenses during a certain period to the estimated or fixed income for that period. For example is Malaysia plan their budget in terms of one year. Budget also can be defined as a statement about revenue and expenditure for the future that used as a tool for planning and management of economic resources for fulfill the citizen needs.

Budgets are the foundation to our financial success. Once we are on our own and begin making, spending and investing money, budgets are our plan to guide us. Budgeting is about planning, which is crucial to produce a desired effect. A budget is a money plan. With it, we can organize and control our financial resources, set and realize goals, and decide in advance how our money will work for us. A budget can be as simple as it is powerful. The basic idea behind budgeting is to save money up front for both known and unknown expenses.

2. STATEMENT BY FINANCE MINISTER

“Budget is a one of the annual economic plan intended to implement the socio-economic policies as specified in Malaysia plan for five years,” YAB Dato' Sri Haji Mohd Najib bin Tun Haji Abdul Razak, Malaysia’s Finance Minister.

3. OBJECTIVE OF BUDGET

There have several objective of budget. One of the budget’s objective is budget...