Get LS. GOVERNMENT OF MALAYSIA ‘Pact Acsuntng © Your Serves FEDERAL GOVERNMENT STATEMENTS 2015FEDERAL GOVERNMENT FINANCIAL STATEMENTS 2015 FEDERAL GOVERNMENT FINANCIAL STATEMENTS 2015 by the Accountant General of Malaysia in compliance with Section 16(1) of the Financial Procedure Act 1957 [Act 61] and audited by the Auditor General before being tabled in Parliament in compliance with Section 16(2) of the said Act. T: 2015 Federal Government Financial Statements are prepared The preparation of Federal Government Financial Statements is to show the financial position, cash flow and financial performance, These Financial Statements report on all the financial transactions pertaining to the sources and applications of financial resources as appropriated by Parliament for 2016 financial year. The Federal Government Financial Statements presentation is inline with accounting best practices to facilitate understanding and users analysis of financial statements. The Financial Statements contain the Statement of Financial Position, Statement of Cash Receipts and Payments, Statement of Financial Performance, Statement of Memorandum Accounts and Notes to the Financial Statements. Notes to the Financial Statements include further explanations and detailed schedules of amounts shown in the Financial Statements.CONTENTS es ee Ee ee 4 ecutive Summary 45 Hevvurant Generals Repor 39 a 42 43 44 46 47 48 FEDERAL GOVERNMENT FINANCIAL STATEMENTS | Cetitcte ofthe Auditor General Glossary of Federal Government Financial Statements Salament by Secretary General of Treasury and Accountant Ganeral of Malaysia Salement of Financial Postion Statement of Cash Reclpts and Payments Salement of Financial Perfomance Satement of Memorandum Pocourts Notes tothe Financial Statements 64 72 7 83 89 95 2015 ‘tachment 4 Salement of Operating Expenditure tachment 2 Statement of Dvelopment Expenditure tachment 3 Stalament cf Mamorandum Azceunt of Racoverable Loans tachment 4 Saloment of Memorandum Account of Investments tachment § Statement of Memorandum Account of Public Debt tachment 6 Saleen of Memorandum Account of Stluory Gueranizes 101 106 107 Foderal Government Financial Siatities 2006-2015 Organisation Chat ~ Ministry of Finance, Malaysia Organisation Char ~ Accountant General's Department, Malaysia FsEXECUTIVE SUMMARYoa FEDERAL GOVERNMENT FINANCIAL STATEMENTS 2015 EXECUTIVE SUMMARY ‘he 2015 Budget is formulated with focus on the ‘People's Economy’ and outlines main strategies as follows: © First Strategy Strengthening Economic Growth © Second Strategy Enhancing Fiscal Governance © Third Strategy Developing Human Capital and Entrepreneurship B © Fourth Strategy Advancing Bumiputera Agenda ©. Fifth Strategy Upholding Role of Women © Sixth Strategy Developing National Youth Transformation Programme; and © Seventh Strategy Prioritising Well-Being of the Rakyat In the 2015 Budget, a total amount of FM273.94 billion is allocated to implement strategies, development ‘Programmes and projects with overall objective of propering the nation and promoting the well-being of people. Federal Government revenue for the year 2015 amounting to RM219.09 billion as compared to RM234.98 billion of total revenue estimate. Meanwhile, Federal Government total overall expenaiture for the year 2015 amounted to RM257.77 billion as compared to RM264.75 billion of revised total expenditure budget. This has caused the Federal Government to incur deficit amounting to RM38.68 billion in the year 2015. For the year 2015, the Federal Government surplus stood at RM2.09 billion in the current account. The Federal Government overall deficit slightly decreased from 3.38% of Gross Domestic Product (GDP) in 2014 to 3.22% in 2015. The Federal Government cash increased by RM5.55 billion to PM22.97 billion in 2019 as total receipts of M842.17 billion exceed total payments of RM336.62 billion. Receipts for the year 2015 comprised RM219.09 billion in revenue, RM121.11 billion in loan, RM0.25 billion in external assistance, RM7.03 billion in capital receipts and RM0.69 billion in trust recejpts. Government revenue at 64.03% was the main component of receipts followed by loans and external assistance at 35.47% whereas capital receipts and trust receipts at 0.50%. Payments for the year 2015 comprised RM215.04 billion for operating expenditure, FN42.10 bition for development expenditure including payment under Private Finance Initiative and Activity of FNM1.33 billion, RIM77.62 billion for repayment of loans and external assistance and RM1.86 billion for capital expenditure. Operating expenditure at 63.88% formed the main component of payments followed by repayment of loans and external assistance at 23.06%, development expenditure incluaing payment under Private Finance Initiative and Activity at 12.51% and capital expenditure at 0.55%. ra s 5 ir]= = 2 es a [FEDERAL GOVERNMENT FINANCIAL STATEMENTS 2015 The Federal Government Assets disclosed in the Statement of Memorandum Accounts only include Recoverable Loans amounting to RM105.73 billion and investments amounting to RM30.32 billion. Federal Government Liabilities disclosed in the Statement of Memorandum Accounts comprised of Federal Debt amounting to RM630.54 billion and Other Liabilities amounting to RMO.71 billion. The Federal Debt increased by 8. 19% to RM630.4 billion in 2015 which comprisedof domestic debtamounting to RIM609.06 billion (96.59%) and external debt including external assistance amounting to RM21.48 billion (8.41%), The debt service charges in 2015 were at 11.19% (FIM24.28 billion) of total operating expenditure.2015) raroucnour rue vear 20.15 Canin Caan Pa PALA) L Cale) 3.22% Em) My EAN] BILLION fa Co ay er BILLION Coen ery SWE BILLIONFEDERAL GOVERNMENT FINANCIAL STATEMENTS PERFORMANCE AT A GLANCE Budget Performance 2015 7 [ I fm Revenue Estmsto im Experiture Budget "5 ActuatReverue Actual Expectore ‘0 Buciget Performance 2011-2015, = = re 3= = 2 a [FEDERAL GOVERNMENT FINANCIAL STATEMENTS 2015 49) @ IN Consokistec Rovere — Investments Aecourt mim Consoitssted Tost = = Cas) ecount I Coneokioted Loan — Conse For Becoart zon 2012 Tax Revenve (m Nion Tox Recspte 2s 20d Emotumants Supple and Seaees (Asante and Other Exponiture (Rance to Development Fund © Gront ana Fted ChargesFEDERAL GOVERNMENT FINANCIAL STATEMENTS (SES SS 1% Uy Tec Revenue I Non-Tax Revenue I Non Revenue Recepts and Revenue’ ftom Federal Terrteries (EES " [terns oe say | (Ml Grants end Fred Charges I Emotments Assets and Other Expenditure I supplies and Senices = = re 3[FEDERAL GOVERNMENT FINANCIAL STATEMENTS (a em Receipt [im Develment Expendture mm Curent SuptaDetce — Balance as at 31 December Cu) Consolidated Trust ‘Account = = 2 rt Balnce of Govemment Tus Fund Balance of Publ Tt Fd IB betece of Depoat Account — real Conoiates ust Accountoa FEDERAL GOVERNMENT FINANCIAL STATEMENTS 2015 eto WIE Consolidated Loan ‘Account mn | m2 | ms | ams | 208 ecept NEN Transtor Fayment — Balance (RE EET = 150 ios mmm Domesictaans mmm Eternal Loans Loan forHoushig mm Exfomel Assistance ean Fund — LeonBotnnces[FEDERAL GOVERNMENT FINANCIAL STATEMENTS 201 00 oo 200 way C/I i a oo ‘Statutory Guarantees 500 00 so 200 409 oH rm T 1 zon | zo | 2s ao | 0N5 1m Doposters Companies LET Un Account Receivables = = 2 rtoa FEDERAL GOVERNMENT FINANCIAL STATEMENTS 2015 RS Federal Debt Expenditure = = 3 zor 2122018 aN,_-ACCOUNTANT GENERAL'S REPORTACCOUNTANT oe FEDERAL GOVERNMENT FINANCIAL STATEMENTS 2015 GENERAL’S REPORT BUDGETARY PERFORMANCE he 2015 Budget was formulated to ensure l the economy continues to expand at a strong pace, with the overall objective of prospering the nation and promoting the well-being of the people. Towards this, the 2015 Budget was formulated based on the theme “People’s Economy”, outlining seven main strategies: ) First Strategy Strengthening Economic Growth; i) Second Strategy Enhancing Fiscal Governance; ii) Third Strategy Developing Human Capital and Enterpreneurship; iv) Fourth Strategy ‘Advancing Bumiputera Agenda vy) Fifth Strategy Upholding Role of Women; vi) Sixth Strategy Developing National Youth Transformation Programme; and vil) Seventh Strategy Prioritising Well-Being of the Rakyat The 2015 Budget was approved by the Parliament in December 2014 with an allocation amounting to RM273.94 billion to carry out all the strategies, development programmes and projects, concentrating on the people's well-being, national transformation and economic development. From the total, a sum of RM223.44 billion is for Operating Expenditure and RMS0.50 billion for Development Expenditure. ‘Total Operating and Development Expenditure for the year 2015 is RM257.77 billion (excludes RM2.09 billion transferred from the Consolidated Revenue Account to Development Fund), which is 94.10% of the total budget allocation of RM273.94 billion. Of this amount, Operating Expenditure amounted to RM217.00 billion (excluding the transfer to the Development Fund) while Development Expenditure amounted to RM40.77 billion. The Operating Expenditure comprises of Chatged and Supply Expenditure. Charged Expenciture amounted to RM47.78 billion, 99.73% of the total revised allocation of RM47.91 billion while Supply Expenditure amounted to AM 169.22 billion (excluding the transfer to the Development Fund), 97.35% of the total revised allocation of RM173.82 billion. The Development Expenditure for the year 2016 amounting to RM40.77 billion, 94.77% of the total revised allocation of RM43.03 billion. Of this amount, direct expenditure was RM38.60 billion, while expenditure through loans amounting to RM2.17 billion. REVIEW AND ANALYSIS OF FEDERAL GOVERNMENT FINANCIAL, STATEMENT The Financial Statements for the year ended 31 December 2015 were prepared and submitted to the Auditor General on 26 February 2016. The Auditor General as provided by the Audit Act 1957 [Act 62] audited the Financial Statements 2016 and issued the Certificate of the Auditor General on 14 April 2076, The scope of discussion covers Statements of Financial Position, Statement of Cash Receipts and Payments and Statement of Memorandum Accounts. The statements were prepared based on Recommended Practice Guideline (RPG) 2-Financial Statement Discussion and Analysis issued by International Public Sector Accounting Standards Board (IPSASB). Fd Fa a 5 Fg