This document defines financial administration and explains the budget cycle process in Malaysia. Financial administration involves planning, developing and implementing policies related to taxation, budgeting, spending, acquisition and accounting. It deals with how a government utilizes public funds to deliver services and manages revenue collection. The budget cycle in Malaysia refers to Budget 2010, and involves the executive branch proposing a budget that is then passed into law by the legislative branch. The process allows the government to forecast revenues and expenditures and set policy priorities through the annual budget.

1. PRINCIPLES OF PUBLIC ADMINISTRATION (PAD190)CLASS: DPA 2GTITLE ASSIGNMENT : a) DEFINE FINANCIAL ADMINISTRATIONb) EXPLAIN THE PROCESS OF BUDGET CYCLE IN MALAYSIA BY REFERRING TO “BUDGET 2010”PREPARED BY :NURSHAFEIKHA BINTI ZAINAL ABIDIN(2010231134)ATIRA BINTI ADLAN(2010483136)DIAN NATASHA BINTI MOSTAPAR(2009382099)PREPARED FOR:MS SHAMSINAR BINTI RAHMAN

2. INTRODUCTION Financial administration is one element in determining control of the national economy and social development. The financial administration is a process that involves of planning, development and implementation of policies on taxation, budgeting, spending, acquisition and accounting. Budget is a list of all planned expenses and revenues. Government budget is a legal document that is often passed by legislature and approved by chief executive or president.

3. DEFINITION FINANCIAL ADMINISTRATION Concerned with paying for governmental activities, administration and design of those activities, concerns with the techniques of managing the public money, deals with how the government utilizing the public fund in delivering the services to public and how the government should manage the collection of potential revenues and spend the revenues. Defined as an encompassing both the spending by government and the methods used to pay for that spending, especially taxation and borrowing.

4. THE IMPORTANCE OF PUBLIC FINANCE ADMINISTRATION To make sure the government have enough money to support public activities in term of financial and government expenditure. To make sure the public fund is being managed properly by following the law, rules and procedures. To prevent from any misused of fund, corruption in spending the public money.

5. BUDGET Most important decision making process in every governmental organization. Record policy decision outcomes, cite policy priorities as well as program goals and objectives, delineate government’s total service effort and measure its performance, impact and overall effectiveness. Provide a forecast of revenues and expenditures. A political process that involves two major branches of the government and that is the executive and legislative body.

6. PROCESS OF BUDGET CYCLE IN MALAYSIA BY REFERRING TO BUDGET 2010

8. CONCLUSION Malaysia is one country that has a sound financial position. The reason is because of the financial administration that is efficient, quick move when hit by various crises either inside or outside the country. Through the financial administration also the national budget can be presented in the Parliament properly.