Budget 2011: Spend baby spend!
I haven't read the full text of the budget. But I can already see what Idris Jala spoke about this country going bankrupt is all hot air. The government is spending more. I managed to speak about this impending budget with the Oracle of Syed Putra. I asked him, over the next 10 years, the government will spend around plus or minus RM1.44 trillion. Roughly about 140 billion per year for the next 10 years. Minus 30% through institutionalized leakages, probably we will spend 100 billion. These, said the Oracle, will mainly be on big mega projects. How prescient. Today, the PM has announced his big government budget. We are going to see the role of bigger government. What I have said turns out to be true. Anything the PM says now are not muktamad yet. He said, the age of big government is over. This budget is a complete reversal of the declaration. It's the age of bigger government. He is going to go ahead with the construction of the MRT- RM 43 billion. When I said this was the figure, many people commented it was wrong. The figure is lower they claimed. Today, its confirmed. Its RM 43,000,000,000. Nine zeroes there. 43,000 billion. Its looks like Najib's erection of another behemoth building outsizes Dr Mahathir's. He is building a 100 storey high building. Build baby build. Where is the government commitment to instill financial discipline and prudence? Year after year, government departments overspend. The government is still spending a huge amount on OPEX. RM 162 billion on OPex with much going to the bloated civil service of 1.2 million under trained workers. At the same time, its scaling down development expenditure. When we are going to scale down politicking? I note that he is proposing to pay more for JKKK allowances. This is the source of excessive politicking. All the ex jagas, village loafers and bullies are fighting to become village headmen. Each year, state governments face countless problems in appointing village heads. Scale down the structure. Abolish all these politically charged village headmen posts. If we have to pay higher salaries, let's have permanent government servants do the job of village headmen. Lets appoint for example Village development officers out of graduates. Each graduate headman can look after 5 villages and they manage these villages thorough committees anyway. The rakyat still have a say in managing their kampungs. Let's have qualified people managing villages. We will write in more detail about this obviously made for elections budget. In the meantime, please spare us the nauseating commendations that this budget is a people's budget, a pro development budget, whatever. It may actually be a rich man's budget. It's always sunny in a rich man's world.
11 comments:
Dear Sakmongkol
I am just as disappointed as you are after reviewing the highlights of the budget. Lots of sweets for imams, village heads and so on, designed to curry favour with these people. There is nothing for private businesses in general, the people who would be investing the 60% of 1.44 trillion. Where are the tax incentives, investment incentives, R&D and training incentives, and lower tax rates? Why would foreigners want to come here? So we can see that there will be a big shortfall of private (excluding GLC) investments.
Najib is betting everything on those big infrastructure projects, rushing them to tender. Why? Well, there is a wicked theory about. These contracts must be awarded quickly to cronies so that they can quickly draw down loans and some of that money can be passed on. The politicians need money – lots – quickly. GE13 is around the corner. Far fetched?
You see, these politicians have all grown up feeding off big projects started by your hero Dr M. They are just heirs to that method of government. Their guru taught them well. If we have learned anything about government projects they typically run 30-50% over budget. So expect the same for those just announced. The government will run out of money. I can’t for the life of me fathom the logic of this 100-story menera except that this is just another coach in the long gravy train.
Sakmongkol, it is time to quit UMNO and join with all the good people of Malaysia to bring about a real change in government.
awww..take heart dato sak...now we all have the opportunity to buy our wives/mistresses cheaper sexy underwear...that's good news no?
and since dsNajid is "never muktamad one" i propose he changes that 100 storey menara project money to create a new scholarship fund to be awarded to students strictly on merit...irrespective of color or creed... that's what i would do if i were him...
Sak,total budgeted expenditure is RM 212 BILLIONS.The question is where the govt is going to get the cash to finance this expenditure when the govt is currently financially BANKRUPT.Under the ETP,the private sector must come up with 92% of the value of the project.Therefore,for project like the MRT which is RM43 BILLIONS,the private sector must come up with RM 39 Billions to carry out this project. As usual,the private sectors WILL NOT COME OUT WITH THE MONEY and in the end they will use our EPF money or issue bonds guaranteed BY THE GOVT like PKFZ and Langkawi Tuna Project.Another thing,what is the point of asking PNB to build a 100 storey
worth RM 5 Billion when we have the TWIN TOWERS and this 5 billion can be use for other better purposes. I agree we must bulid the MRT to avoid congestion but the RM 43 billion is excessive.This is like what happen to the monorail system,because of corruption,to bulit A KILOMETER of the track is RM 100 MILLION.KL Monorail took a RM 900 million loan from Bank PEMBANGUNAN and in the end as expected the loan turn NPL and Bank Pembangunan has to write off the loan and the MAIN BENEFICIARY was SCOMI who bought the assets charged to the bank at a very low price.AT THE END OF THE DAY,AS USUAL THE main loser is the rakyat.
I feel scared... for my EPF money.
Can I grow older faster? Only God can do that.... sorry.
This proves one thing. UMNO knows they are going to lose the next election. So spend , spend and spend lah until there is nothing left like Phillipines when Pakatan takes over.
Then like hero UMNO returns as saviour with big spending....
Running country like running a company ...borrow money from bank and start buying BMWs and decorate office like palace. Then enjoy until loan is due to be paid.
I particularly like the parting sentence," its always sunny in a rich man's world".
How about my world then? i am from what u call the long forgotten middle income earners bracket.I want to purchase a house for my family,i cant buy a low cost house because of the wage cap, whats my next choice then after the 35-45k low cost house?
Do u know whats the current price for the rumah kos sederhana(if there is one these days in the first place)?
Ukur baju badan sendiri.Yes i do practice that but then the very basic human need for a roof over the head pun tak boleh nak settle, macam mana dato?
I am not asking for a bunglow, but a comfortable , affordable house for people like me.Kalau nak monthly installment potong sampai rm1k lebih then macam mana dengan perbelanjaan wajib yang lain?
I am not asking for money from the goverment.I am asking for a fair deal.Can u do a write up on middle income earners among the goverment servents?
Budget 101 principles to manage a DEFICIT:-
1. Trim overheads/Opex
2. Plug loose-ends/leakages
3. Increase productivity
4. Invest in longer-term income producing CAPEX/Infrastructure
5. Increase country's exports/govt revenue
But...all are forgotten due to 'face-value', just can't afford to loose out in holding on to power to govern.
I guess it is alright to spend as long as we have enough to spill it out and yet enough on reserve. Spending will somehow grease up the big business machinery right from power supply to sewerage sludge.
Spending will ensure the whole spectrum of rakyat enjoy and share the excitement and benefit. The babies, the tadika kids, school kids, students of higher institutions, government servants, self employed people, business people, politicians can now hug the big budget and kiss it.
And the unemployed citizens, illegal immigrants, beggars, muggers, and robbers, will undoubtedly enjoy the spillover effect of the big budget too.
Of course, any strategy used can be debated and argued, but it will not take us anywhere. Giving government good support will warm up the stimulating effect.
Talk about village headmen. Government arms for now end at penghulu giving hints of the tribal structure of the old world. Ketua kampung as government servants as suggested seem like a good idea, but we are going to make the big trailer of public sector a lot heavier.
Every section of our society will enjoy the benefit of Budget 2011. But there will be greedy eyes looking for opportunities, with quick hands to snatch and grab.
Thanks.
There is no focus in this budget. What is the PM and his advisors are aiming for? No developed country acheives that without increase in productivity, be it from agricultural practises ,manufacturing or services.
Another mega construction project?? Nampak gaya Mat Indons & Mat Bangla will be the biggest beneficiaries of this budget...
Where is the budget for innovation centric activities and R&D. PM keep harping on higher income per capita and as finance minister he hasn't been hands on championing this objective. The first thing he should do is get someone more capable to be in charge of MOF. He is clearly not cut out for it.
I am sure when (not if) the government goes bankrupt, your goodself and Ku Li will still be UMNO's faithful supporters and both of you will keep on praying for the sun to shine on the poor, gullible Malay country bumpkins who will be the hardest hit.
UMNO is still not aware (or does not care) of the hardships faced by the rural Malays.
Dato'
Seems like DS Najib has just written his last chapter as PM and his legacy could be the Tower of Babel of KL.
it appears that...
a rm65m renovation to the PM residence is part of the budget., said a DAP mp.
but, when will we see toll free roads, better public hospitals and health care, better quality education..?
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