Written by arimi sidek
It is an attempt to correct government's silly mistake.
Malaysiakini.com quoted Anwar as saying that the budget had no incentive for FDI. Pak Lah insisted that 2009 budget is not for the sake of popularity.
I agree with Pak Lah 100%. There is no way BN government, under strugling Pak Lah's administration, is getting more popular simply because of the generous budget that was tabled yesterday.
This is NOT populist budget at all. This is a CORRECTIVE BUDGET.
Now Government realises that it was horribly wrong to increase fuel price hastily.
It was terribly wrong to abandon several billions of fuel subsidies for the sake of "saving". The trade off is unbelievably high; the fuel hike triggered the record breaking inflation that we currently have. The policy on fuel had broken up General Price Index (GPI) natural momentum. As the result, the economy stucks in one-way traffic ever since, GPI soars up. It left us, Malaysians, with the same amount of Ringgit poorer than before.
As I said before, BN government and Malaysian economists, they hate subsidies. They expose Malaysia's economy to viotility of fuel price market because according to them, Malaysia will be far better off without subsidies. They rather willing to have a record breaking inflation than to retain subsidies.
Therefore, Pak Lah and those moron economists introduce many unnecessary corrective actions due to the mistake they had committed; right in this budget.
* Households which incur monthly electricity bills of RM20 or less, will not have to pay for electricity, for the period from 1 October 2008 to end of 2009.
* The current tax rebate of RM350 per person be increased to RM400 for those with taxable income of RM35,000 and below.
* All interest income from savings for individuals be tax exempt.
* Reduce import duties on various consumer durables from between 10% and 60% to between 5% and 30%. These include blender, rice cooker, microwave oven and electric kettle.
Full import duty exemption on several food items, which currently attract import duties of between 2% and 20%. These include vermicelli, biscuits, fruit juices and canned sweet corn.
* Reduce the road tax on private passenger vehicles with diesel engines to be the same as those with petrol engines, effective 1 September 2008 (Beritadarigunung.blogspot.com)
Please read the highlighted items very carefully. Those are corrective actions with a single aim, "to reduce burden of the people", so they said. But actually NO, they aren't. Those items are going to reduce government income. So they will be on deficit budget. Pak Lah realized and announced in the same session that federal government is going to tighten the belt next year. Government had increased fuel price and Malaysian are generally pissed off over the issue. So, government have play a charitable Santa Clause for now.
Lets hope that he was just kidding us. Because if he was telling the truth, Malaysia's economy will shrink further next year. I am telling this because, in the period of economic distress, the most (and almost the only) reliable resources to simulate growth is in the form of government spendings (G). If government reduce spendings, then the growth of the economy will be getting slower, less productive, and GPI will goes even higher.
I also urge Pak Lah's economists to calculate and translate those highlighted items into real amount of Ringit in the year, 2009. After that, ask them to compare THAT real Ringgit to fuel subsidies that they had forgone with; and again, to provide the good answer to which is a simple method to safeguard economy growth and inflation between the two. I bet the amount of those items aim "to reduce burden of the people" will be higher than the subdidies.
So wonder they wanna meddle with fuel subsidies again in future, and to keep on talking on complicated methods uh...
The "not trying to be popular" budget turned out to be a corrective of a silly mistake. It made myself skeptical once, and I now tend to be skeptical to other elements in the budget as well.
2009 budget seems to put an extra pamper to Sabah and Sarawak.
Not trying to be popular, really?
Sure that this has nothing to do with Anwar's plan to topple BN on mid-September?
this stupid P.M.don't how to manage this country economic, so expel them....
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