Tertiary Sector

CHAPTER 6

TERTIARY SECTOR

PUBLIC SECTOR

An agency that participates in industrial, agricultural, finance and trade sectors

but owned by federal or state government.

It also provides incentives for

economic development, to ensure balanced development between regions, to

accelerate the growth of potential sector which generates higher income to the

country as well as to overcome the socio-economic problems.

Functions of The Government

1.

Regulating

2.

Facilitating

3.

To identify and give priority to the most important and critical projects to

be developed.

4.

Government relations with the private sector

5.

Staff and line functions

6.

Policy making

7.

To create equal distribution of income among Malaysians

FISCAL POLICY

Refers to the government’s management of the economy by varying the size and

the type of taxation, public debt and government expenditure and government

funds.

Objectives

1.

Manage the economy efficiently

2.

Achieve high economic growth

3.

Raise the general level of real income and aggregate demand

4.

Redistribute income and resources efficiently

Federal Government Budget

Refers to the excess of government expenditure over government revenue

Types of Budget Policy

1.

Balanced budget policy

2.

Surplus budget policy

3.

Deficit budget policy

Government’s revenue

1.

Tax revenue

2.

Non tax revenue and borrowings

3.

Non revenue receipt

Government’s expenditure

1.

Operating expenditure

2.

Development expenditure

PRIVATIZATION

Privatization may be defined as the transfer of the public sector activities

and functions to the private sector.

This applies to the commercial and

industrial enterprises, which are often owned, managed and implemented by the

public sector, which could otherwise be operated by the private sector.

Privatization is premised on the assumption of the superiority of market force

over...