answer quikly read the passeg and answer this question (a) (i) Define “expansionary fiscal policy” using above Malaysia budget 2022article. (ii) Explain the application of “expansionary fiscal policy” using aboveMalaysia budget 2022 article. KUALA LUMPUR, Oct 29 - Malaysia Budget 2022 SummaryThe following are the highlights of Malaysia Budget 2022 themed "Kelvarga Malaysia,Makmur Sejaktera (A Prosperous Malaysian Family" which was presented by FinanceMinister Tengku Datuk Seri Zafrul Abdul Aziz in Parliament on 29 October 2021.The government has allocated a total of RM332.1 billion for Budget 2022, the highest valuecompared to previous budgets. Government revenue is expected to increase to RM234billion in 2022. A total of RM233.5 billion is allocated for operating expenditure, RM75.6billion for development expenditure and RM23 billion under the CoviD-19 Fund. RM2billion is provided as contingency savingsFiscal deficit for 2022 is projected to shrink to 6.0 per cent of GDP from 6.5 per cent in2021. The goverment intends to provide individual tax relief and tax deduction toemployers on costs associated with taking self-purchased booster vaccines. The KSWPminimum contribution tax reduction period will be extended to nine per cent from 11 percent until June 2022, involving an estimated value of RM2 billion. Sales tax exemption of100 per cent will be extended for Completely Knocked Down (CKD) passenger vehiclesand 30 per cent on Completely Built Up (CBUS) vchicles, including MPVS and SUVS forsix months until June 30, 2022. The govemment provides guarantees of up to RM2 billionto banks through the Housing Credit Guarantee Scheme to provide gig workers, smallentrepreneurs and farmmers access to financing to puchase houses. A financing packageworth RM40 billion is provided under the Semarak Niaga Keluarga Malaysia Programme.The govemment to provide Microcredit financing worth RMI billion. Loans up toRM10.000 at zero-per cent interest, as well as 12-month moratorium to be offered underthe Informal and Micro Financing Scheme. BSN and Agrobank wll offer micro loans ofup to RM75,000 at zero- per cent interest, with a moratorium facility of up to six months The govermment will continue the Cooperative Movement Economic TransformationProgramme (TRANSFER) with an allocation of RM10 million to restore the affectedcooperative activities. RM30 million will be provided for the Cooperative EconomicRecovery Intervention Financing Programme. The government is allocating RM20 millionsupport the expansion of the l-TEKAD programme. A total of RMS0 million is allocatedthrough matching grants for the Malaysia Co-investment Fund and an additional RM100million is allocated for investments by BPMB to further support altermative financing.Funding facilities worth RM2.1 billion through equity and quasi-equity investments will beintroduced to help companies facing gearing or leverage problems. BPMB to offer RESETScheme and BNM will provide a Business Recapitalisation Fund worth RMI billion. Atotal of RM14.2 billion of funds to be made available to SMES. BNM's special fund,especially the Targeted Relief and Recovery Facility, has been increased by RM2 billion.Viable companies listed on Bursa Malaysia affected by the COVID-19 pandemic willreceive an injection of additional funds through a government-owned Special PurposeVehicle in the form of equity instruments or other related instruments. Khazanah Nasionalwill be mandated to assist the govemment in providing the infrastructure to manage a fundtotalling at least RM3 billion. Syarikat Jaminan Pembiayaan Pemiagaan Berhad (SJPP) tobe enhanced through guarantees for scheduled and restructured financing with an additionalguarantee limit of RMI0 billion.The govemment plans to extend the tax dedaction for the cost of renovation and upgradingof premises up to RM300,000 until Dec 31, 2021. Additional tax deduction of up toRM50,000 for companies registered under Safe@ Work on the rental expenses of employeeaccommodation premises extended for another year. A 'Business Travellers Center will beprovided in Johor for short-term business visitors from Singapore at a cost of RM10 million.Deferment of income tax installment payment for MSMES for six months until June 30,2022. All businesses are allowed to amend the estimated income tax payable in the 11thmonth before Oct 31, 2022. RM25 million is allocated to explare high-impact investmentsand export markets through the Trade and Investment Mission. A special strategicinvestment fund of up to RM2 billion is provided to attract strategic foreign investmentamong multinational companies. A total of RM80 million will be provided through MITIto train 20,000 employees who support industry clusters such as MRO in Subang, E&E inKulim and chemicals in Gebeng.(Source: Ministry of Finance, 2021)The expansionary fiscal policy is adopted to overcome unemployment or recessionproblems. In recession, especially in post Covid19 pandemic, the economy suffers fromrising unemployment, falling income, and shrinking economic activity. The govemmentwill increase public spending by undertaking public works programmes and reduces taxesThe effect of tax cuts would increase the amount of dispasable income of individuals andbusiness fims.

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Answered: (a) (i) Define “expansionary fiscal…

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