I received an email (the entire text is appended below) from a dear friend whose comments on the 2012 Budget is worth a thought. Please take time to read, and I am sure you too have a comment or two on the recently announced Budget 2012.
MY TAKE ON THE BUDGET by Shelldrake
Being only a retired military officer, I may be blind to the economic facts, but certainly not stupid to swallow a pack of untruths (I do not like to use the word lies).
Firstly, a bunch of ‘one offs’ handouts that mainly makes the civil servants, soldiers, policemen, pensioners happy. Then some populist moves across the board to give everyone hope.
Now, I wonder and ask some searching questions:
1. QUESTION - IS THERE A LONG TERM INVESTMENT BEYOND 2012 IN THE BUDGET? ANSWER -Nyet, Nadai, Nien, Bo liau, Tadak, Yillai!!!. So, is it wrong for me to assume that the whole idea is to con the people onto an election victory and then do the fire fighting/damage control etc. later? How often have you heard recently from the government departments, “Allocation ada, tapi duit belum terima”. Here, they were playing a mahjong game, with the skill of a Tai Chi exponent. It gets us by, believe me, but it doesn’t solve the problem.
2. QUESTION - HOW CAN JIBBY CONFIDENTLY PREDICT A 5 TO 6% GDP GROWTH IN 2012 TO ‘AFFORD’ THE EXPENDITURE, WHEN THE WORLD IS ON THE BRINK OF AN IMPENDING DOUBLE DIP RECESSION? ANSWER - I guess 4 to 4.4% would be more realistic at the most. Now, here lies the biggest failure. There is no contingency whatsoever if the recession kicks in. Remember, the failure to plan is planning a failure.
3. QUESTION - HOW IS THE DEFICIT GAP GOING TO CLOSE? ANSWER - There is no clear cut plans on prudent spending against added revenue collection. The Capital Gain Tax increase is a drop in the ocean. More money can be collected from stamp duties due to the volume of transaction; from one area of unproductiveness to another area of unproductiveness. Budget deficits translate into debts. For 2010, it is estimated to be RM20.5 billion – an increase of nearly 60%. Now, let’s do the math – take interest rate at 5%, RM12.8 billion debt service charges in 2008 would make federal government debt at RM256 billion. Now the debt service charges at RM20.5 billion, the federal government’s debt is projected at RM410 billion. This is an increase of RM154 billion from 2008 to 2012, an average increase of RM38.5 billion per year. That would now be the nation’s annual actual deficit. Yes, I have tears in my eyes too, because my children will have to pay for it.
4. QUESTION – WHERE IS JIBBY GOING TO GET THE MONEY? ANSWER - Yes, from us my friends; the long suffering 1.7 million tax payers. The long awaited GST will be shoved in after the election. Mark my words. The EPF and other government-linked funds will be asked to do ‘national service’ by investing in debt papers issued by the government. Again, a case of using the peoples’ money to bail out a financially weak government.
So, in essence I say, look at the forest my dear friends and now tell me how they are ruining my beloved Malaysia. Call me a pessimist, non believer, not a risk taker etc., but I ask –CAN YOU RUN A COUNTRY ON BORROWED TIME? The answer is YES, if you are a leader living on borrowed time.
May God bless us all.
CRUSADE AGAINST CORRUPTION