Auditor-General’s Report: Non-tax revenue from benefits and returns from investments at RM46.07b in 2020 while Petronas’ dividend to govt RM34b
KUALA LUMPUR, Oct 28 — Benefits and returns from investments were main contributors to non-tax revenue for 2020, amounting to RM46.07 billion or 74.2 per cent of total non-tax revenue, the Auditor-General’s Report (LKAN) said. According to the report, this amount decreased by RM13.99 billion or...
channel for the latest updates.KUALA LUMPUR, Oct 28 — Benefits and returns from investments were main contributors to non-tax revenue for 2020, amounting to RM46.07 billion or 74.2 per cent of total non-tax revenue, the Auditor-General’s Report (LKAN) said.
According to the report, this amount decreased by RM13.99 billion or 23.3 per cent compared to RM60.06 billion recorded in 2019.“The reduction was due to lower dividend payment of RM34 billion from Petroliam Nasional Bhd (Petronas) to the government compared to 2019 which amounted to RM54 billion,” said LKAN in conjunction with the tabling of the federal government’s financial statements and the 2020 Federal Ministries and Departments Compliance Audit at the Dewan Rakyat today.
In 2020, a total of RM6.05 billion, which was the net premium from the issuance of federal loans in the premium/discount settlement account of government securities, had been transferred to the non-tax revenue account under interest and income from investments, said LKAN. headtopics.com
The premium transferred is for loans issued in 2017, 2019 and part of 2020.In addition, licences, registration fees and permits were the second-largest contributors to non-tax revenue.“The decrease in revenue under this category was due to the reduction of RM1.58 billion in petroleum royalty receipts amounting to RM4.20 billion in 2020, compared to RM5.78 billion in 2019.
“The actual expenditure performance is RM224.60 billion or 99.1 per cent, a decrease of RM38.74 billion or 14.7 per cent compared to 2019 which amounted to RM263.34 billion,” it said.Emolument expenditure amounted to RM82.99 billion compared to RM80.53 billion in 2019, an increase of RM2.46 billion or 3.1 per cent.
Covid-19 FundA total of RM61.07 billion was transferred to the Development Fund, while RM38.02 billion was transferred to the Covid-19 Fund, the report revealed.“The transfer to the Covid-19 Fund was in line with the establishment of the fund gazetted under the Temporary Measures for Government Financing Act 2020, or Act 830, on October 26, 2020,” it said.
The first transfer was approved by the Dewan Rakyat on December 17, 2020 amounting to RM38 billion, while the second transfer on December 31, 2020 amounted to RM20 million.“Audit analysis of gross loans amounting to RM194.55 billion received in 2020 found that a total of RM98.06 billion or 50.4 per cent of it was used to finance the principal repayment of matured loans in 2020,” it added. headtopics.com
Principal repayments increased by RM15.0 billion or 18.1 per cent compared to 2019 which amounted to RM83.050 billion.A total of RM97.73 billion or 99.7 per cent were domestic loan repayments, while RM0.33 billion or 0.3 per cent were external debt repayments.
“This shows the government’s dependence on new loans to finance the repayment of matured loans.“In the long run, the financial burden of the country will increase for the payment of borrowing costs causing the management allocation for the procurement of supplies and services as well as the purchase of assets to be reduced,” LKAN said.
According to the report, a total of RM48.571 billion from loan receipts in 2020 was transferred to the Development Fund, a decrease of RM3.16 billion or 6.1 per cent compared to the transfer of loan receipts in 2019 which amounted to RM51.73 billion.Only a total of RM40.32 billion or 20.7 per cent of total gross loans was used for development expenditure, while RM8.26 billion was used to pay off private financing initiative liabilities and guarantee commitments (2019: RM6.238 billion).
This brings the total payment of government liabilities for 2020 to RM106.323 billion or 54.6 per cent of total gross loan receipts for the financial year 2020 [2019: RM89.288 billion (64.4 per cent)]. — Bernama Read more: Malay Mail »
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