Wednesday, June 11, 2008

Austerity Drive To Combat Inflation

Pak Lah announced four cuts in Federal government's expenditure to boost austerity drive in the wake of the major petrol price hike.

Such a move has very minimal effect on Federal budget saving. But it does provide a lead role in calling on rakyat to be thrifty during the present hard times.

This reminds me of the Asian economic meltdown in 1998 when Malaysia was also immensely impacted. The government then painstakingly trimmed off spending to save the nation's coffers which had run critically low.

But our government now is a lot better off financially than during the crisis time in 1998.

Does Pak Lah really have to go to the extent of shrinking expenditure at the expense of our economic growth? What we really need to slash are the abuses and excesses!


Bengbeng said...

last paragraph very relevant..but nobody seems to b saying anything abt it other than trumpeting his praises saying how it is absolutely necessary

Tony Hii said...

bengbeng, it is a sad scenario!