Friday, October 25, 2013

The tough-gets-going Budget




Click on video and read:
Expect to see a tougher side of Najib Razak, PM and Minister of Finance, when he tables the 2014 Budget this afternoon. Which won't be a bad thing, if you ask me. 
For example, I hear that he's going to stress on what insiders are calling "disciplined spending". Prompted by the revelations made year after year by the Auditor-General, on how some departments have blundered, Najib wants to go after authorities guilty of wasting public funds. "He's going to make a very clear commitment on that this afternoon," I heard one insider say. 
It will also be about toughening up the domestic economy without burdening the poor. One of Najib's main concerns is the seemingly never-ending economic and financial crisis around the world - from the US subprime crisis to the Euro debt crisis - and how the local economy continues to get banged up each time that happens. The 2014 Budget's strategy is to help toughen up the local economy to better absorb the impact of the next crisis. "It's not a question of IF, it's WHEN the next crisis will happen," the insider said. 
Toughening up means further subsidy rationalization. Rest assured that the 2014 Budget will still contain a lot of subsidies for the rakyat. Malaysians are a heavily-subsidized lot who are slowly coming to terms with the fact that subsidies can't go on forever but that can't be done overnight. Hence the GST, which will enable Malaysians to start paying for what they consume. The insider won't give anything away on GST. I get the impression - and I hope I'm wrong - that the GST might even be taken off the 2014 Budget! 
Anwar Ibrahim & Co are lining up protests against the GST not really because the GST is "regressive" but because, like Lynas, it is a politically-viable subject matter. I mean, how can it be t hat when only Malaysia, Myanmar and Brunei have not implemented GST in Asean while some 160 and nearly ALL the developed countries have also adopted it, right? 
It's them testing Najib Razak's will to see just how tough he is ...  

10 comments:

Anonymous said...

Belum buat announcement but already an immediate positive spin. How much of the budget speech is written by McKinsey and Pemandu ?

Anonymous said...

Bro Rocky. I am concern about our state of the economy. We haven't have a stronger growth for a very long time and this is worrying. It used to grow by leaps and bound before. I think we should bring back Nor Yakcop. That fella eats economic pie for breakfast.

Ex-AA&Co said...

Datuk,

I posted this on Big Dog. Let me share the same points here:
I am one of those who is in agreement with the introduction of consumption tax such as GST, to alleviate Govt’s coffer and narrowing the budget deficit. It is time that Malaysians realistically think about how and where they are, in this land of plenty.

Like it or not, Idris Jala and Wahid Omar is right about trying to strike the balance between rising cost of living, growing demand for Govt spending and taxes imposed. Malaysians have been living under of the comfort of everything is provided for them, from cradle to grave.

After all, majority of market analysts and high street commercial and IBs are very well aware of the inability to rely on annual revenue of RM125b from IRB and RM33b from Royal Customs.

Over reliance of income from Petronas is neither good.

The maxim of any government is ‘To provide for the things that the people cannot provide for themselves’. These ‘things that people cannot provide for themselves’ are strategic spending such as defense, international diplomacy and even judicial system.

Malaysians as members of a society should strive to do things for themselves, without over reliance for the system to provide for them.

The fact is that, the annual bill is very huge. The kind of money being spent on education and health is simply too big. Even the operating bit alone.

Of course a lot more needed to the development bit of these teo items. Also rural development programs.

In summary, social development program to make more Malaysians live better across the board it utmost priority in the Federal Govt agenda besides the dream to be a high income economy nation.

Its time Malaysians do their bit for all these. The nation provides a conducive environment for them to be developed, find a good job and earn a living. Some even benefitted as entrepreneurs from the opportunities available due the ecpnomic growth, due to all the socio-economic development plans and programs.

As their income position gets better, they can afford a lot more nice things. Even luxuries.

So, they should be made to pay for all these benefits that the nation had provided for them, either directly or indirectly.

Consumption tax is the fairest form of how the citizens and residents to do their bit. The more they consume, the more they pay.

They should do away with the mentality of making others pay for them. Malaysians must own to the needs of their mother-land. In Malay, its ‘Ibu Pertiwi’.

Anonymous said...

Ex-AA&amp Co: Agree with you. First thing to go is NEP. The Malay are with tongkat for too long and worse those who deserve the help not getting the help except the UMNOputra.

Nursi said...

we complain no because only GST, how about other tax, our income tax amongst the highest in this region. Cost of living keep increasing but income tax bracket still maintain, this is not fair...same thing also on ridiculous tax for motor vehicle in this country... I'm agree if GST is implement with condition restructure other tax also..

Anonymous said...

For Malaysia to progress well and good, UMNO MUST be voted out as the disease of corruption has spread too deep and too extensive for this decadent party to manage. If you don't believe, please pick one ministry out of the many bloated ministries and let them tell us what does austerity drive means to them. In fact almost everyone of them are thinking and looking forward to pocket more money into their own accounts.

Anonymous said...

disciplined spending? What he's doing since day one as PM?
The poor will be more poorer and more BRIM and the rich will be Mega Richier. Najib discipline spensing can allowed 1Billion RM istana what a fanstastic idea.

Anonymous said...

Ronald Reagan have summed it up nicely: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.

Anonymous said...

Let them eat cake! said marie antoinette when.asked that the french people have no bread to eat. Next, she would be in the waiting list for nasty giant blade.

same old same old said...

What about the fully subsidised cervical cancer untested vaccination at RM50 million per year? The girls will only be affected in 20 years time. Thats 1 billion for the Glaxo Smith hehe..
only 18 chinese women out of 100,000 get this and only 8 out of 100,000 malay women. Is it justified? How about other deaths like motor bike at 4000 per year? How come even rich chinese are fully subsidised?
How much is allocated for Rosmah pet project Permata this year half a billion?