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FINANCIAL

  1. Scope of work
  2. Existing situation
  3. Financial analysis
  4. Revenue and expenditure projection
  5. Appraisal of revenue and expenditure related options


SCOPE OF WORK

The Study covers :


EXISTING SITUATION

In generaal there is an incresing trend in total revenue and total expenditure from 1985 to 1997. Total revenue increase from RM 228.2 million in 1985 to RM 899.3 million in 1997 whilst total expenditure grew from RM 230.1 million RM 516.2 million during the same period. It appear that the year 1992 was the critical year for DBKL which began to experience a positive cashflow position. The substantial boom was mainly due to an upwards revision on the assessment rates. The assessment revenue during taht year had incresed by more than RM 100 million.


FINANCIAL ANALYSIS

Several financial ratios are calculated to analyse the historical trend of DBKL's financial performance from 1985 to 1997. Liquidity ratios, efficiency ratios and borrowing / leverage ratios indicates DBKL is on the right track in managing and controlling its debt obligation as indicated by the declining trends of its long term and shortterm debts. It is pertinent to observe that the prudent debt management in the period of 1972 to 1997 led to positive gains in DBKL's fiscal health.


REVENUE AND EXPENDITURE PROJECTION

Past trends of DBKL's revenue and expenditure are used to project DBKL's revenue and expenditure up to the year 2020.


APPRAISAL OF REVENUE AND EXPENDITURE RELATED OPTIONS

Several strategies or revenue mix can be explored to generate the finances required to render the essential services and develop infrastructure to achieve KLSP Reviews' goals. These include raising more taxes either by: