The main objective of this paper is to investigate between the political institution and the budget policy in Malaysia. In general, the political party of the ruling government has a rights or privileges in drafting and implementing economic policies including budget policy which is usually announced at the end of every year. In budget policy contains economic measures that would be introduced in the coming year. The measures that were announced closely related to the economic development plan.In drafting the budget policy, elected Member of Parliament or policy-makers of the ruling government will offer ideas, suggestions or proposals to the executive council or the Cabinet. This paper argued that there is a solid link between the member of the ruling party or government with preparation of the budget policy. To examine the matter this paper uses survey (questionnaire) and interviewing policy-makers (Member of Parliament). This paper found that the Member of Parliament do influence the outlining of the annual budget. Implicitly the budget policy has a correlation with the economic performance.