Dasar fiskal dan asakan keluar mengikut sub-sektor perbelanjaan kerajaan di Malaysia

The main purpose of this study is to examine the effect of government expenditure on private consumption based on experience in malaysia for the period of 1970-2008 using gmm estimation method. for this purpose, separate regressions are performed on operating expenditure and development expenditure. empirical results show that each sub sector of operating expenditure and development expenditure gives a different effect on private consumption. operating expenditure for defence, agriculture and rural development and transport and comminucations expenditure have negative relationship with private consumption. however, operating expenditure for security, health and trade and industry expenditure have positive relationship with private consumption. meanwhile, development expenditure for internal security, health and general administration expenditure have a positif effect on private consumption. development expenditure for defence, education, agriculture and rural development and trade and industry expenditure have a positive effect on private consumption. the implication is that fiscal policy shocks in total without making any choice of priorities is not possible to stimulate economic growth or to offset the effects of trade cycle.