Tuesday, September 2, 2008

Malaysian Budget 2009 - Is Our Government Splashing Out?

This budget is certainly a record - it is historic in terms of size of spending and it has dwarfed all the past ten years' deficits. Wow! It is going to get into our history with a few firsts!

Someone asked me: Is the government of Pak Lah splashing out? It is far-fetched to say so. But Pak Lah is indeed generous this time in giving away.

Claimed to be a one-off spending with a noble intention to prop up the slow-moving economy, it leaves much to wonder how beneficial it is to the economy as a whole.

Glacing through, it is noted that the biggest beneficiaries of the expanded spending are the civil servants, Sabah and Sarawak. The budget is quite mute on our rising producers' costs and the direction fronting the nation economically.

Spurring on the consumer market certainly helps to stabilise our GDP in the wake of the global slow-down, but what is more pertinent is to alleviate the rising producers' costs. Our inflation is really cost-driven, not demand-pulled.

The direction of our economy is quite blurry. The new budget scantly sheds light on this subject. I have the impression that we are on a piecemeal approach.

As a whole, I am more inclined to be impressed that it is a politically motivated budget.

The Star has an impressive coverage on the budget.

4 comments:

rubberseeds said...

Very well written and I share your views.

Tony Hii said...

rubberseeds, thank you.

Daniel said...

Tony,
My sources told me that Anwar has gotten more than enough of 30 MP3 to form a new government.But he has a problem.Those MPs who are willing to cross over are mostly non-Malay.
Umno also knows that by just getting at least 30 Members of Parliament from Sabah and Sarawak, or even the 20 from MCA, MIC and Gerakan, to cross over is not enough. That would give Pakatan Rakyat a 43-Malay versus 69-non-Malay federal government. This will be exactly what Umno wants. Then they can play up the ‘Malays have lost political power’ race card. And then the May 13 Version 2would become a reality.

Tony Hii said...

daniel, thank you for your breaking news.