Government Expenditure and Economic Growth in Malaysia
73
The theory of bureaucracy proposed by Niskanen (1971) emphasizes the role of self-interest of the bureaucrats. The bureaucrats are interested in maximizing their own utility. Their utility function consists of salary, perquisites, prestige, power etc. But these items are a direct function of the budget of the bureaus or departments. Thus, the bureaucrats are mainly interested in maximizing the bureau’s budget. However, this theory probably overemphasizes the role of the bureaucrats. In the ultimate analysis, the bureaucrats have to depend upon the politicians for their budgets. In that sense, it is the politicians who have the real power with regard to the budgets.
Government Expenditure and Economic Growth in Malaysia73 The theory of bureaucracy proposed by Niskanen (1971) emphasizes the role of self-interest of the bureaucrats. The bureaucrats are interested in maximizing their own utility. Their utility function consists of salary, perquisites, prestige, power etc. But these items are a direct function of the budget of the bureaus or departments. Thus, the bureaucrats are mainly interested in maximizing the bureau’s budget. However, this theory probably overemphasizes the role of the bureaucrats. In the ultimate analysis, the bureaucrats have to depend upon the politicians for their budgets. In that sense, it is the politicians who have the real power with regard to the budgets.
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