CLO3 Analyze the most common economic policies used to address economic ISBUGS. 2. PROBLEM For almost two years now, Malaysia has been suffering from the Covid-19 pandemic, which saw the economy ravaged as people and industries were put on lockdown for an extended period. and set back the local economy for a few years, According to the World Bank, Malaysia's gross national income (GNI) per capita, based on the current US dollar rates, stood at US$10.580 in 2020, which was lower than US$10.650 in 2018. The country's highest GNI per capita was US$11.230 in 2019. As the country emerges from the pandemic and the economy gradually reopens, Budget 2022 will focus on three major themes which are recovery, resilience, and reform. It will be the foundation for rebuilding Malaysia's economy after almost two years of economic and health crises. Budget 2022, which will be tabled by Finance Minister Tengku Datuk Seri Zafrul Aziz in parliament on Oct 29, is expected to include slightly larger allocations for development expenditure, as well as more direct assistance for the people and industries to spur economic recovery. The 2021 economy in constant 2015 prices (shoe of total in %) SUPPLY MILLION MILLION The 2021 federal government budget WHEREIT CAME FROM WHERE IT WENT MILLION MILLION 2 JULAI2022/SETA/PEC1123 Budget 2022 is expected to be mildly expansionary as the government wil have to balance the need for spurring economic recovery with fiscal discipline. In July, Tengku Zafrul said Malaysia's fiscal deficit would increase to as high as 7% of gross domestic product this year. This will be higher than the 6% estimated in Budget 2021, as the government had to increase spending on Covid-19 containment and management measures this year. The government wants to increase funds allocated to the response to Covid-19 from RM65 billion to RM1 10 billion. To do this, Malaysia will have to increase its statutory debt limit to 65% of GDP from the 60% that was passed by parliament in 2020. The bill to increase the debt limit passed the second reading in the Dewan Rakyat on Oct 11. Meanwhile, the government's debt levels have been increasing steadily. According to Bank Negara Malaysia's data, the government's total liabilities stood at RM958.4 billion as at the second quarter of this year, with RM34 billion being short- term debt. Since the second quarter of 2020, the goverment's short-term debt has increased rapidly from RM6 billion in the first quarter of 2020. Its short-term debt has increased almost 500% between 102020 and 202021. Meanwhile, medium- and long-term debt increased by a quantum of 13% during this period, from RM823.8 billion in 102020 to RM958.4 billion in 202021. This shows that the government relied more on short-term facilities to fund its various programmes and responsibilities during this period. On the back of these issues, analysts and economists do not expect the government to introduce major changes to tax rates, but will focus more on other measures to raise revenue such as optimizing the tax incentives in investments, apart from reducing leakages. According to Kaladher, forecast revenue of RM246 billion in 2022 is 11.8% higher than the RM220 billion in 2021. supported by higher tax contributions from corporations and individuals, as the economic recovery gains momentum in the second half of 2022, and better dividend contributions from government-linked companies, especially Petroliam Nasional Bhd (Petronas). (The Edge Malaysia Weekly, on October 25, 2021 - October 31, 2021.) Answers the following questions: i) Identify the types of methods used by the goverment ir ating the national income based