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Sakmongkol ak 47

Friday 18 June 2010

Deficit hawks are hypocrites.

In my time, I was very concerned about cumulative deficits. My reservations were anchored on the suspicions that deficit spending may be due to financial indiscipline and financial indiscretions. Departments writing their budgets wanting to buy things or enlarging departments without actually using the additional expenditure. Budget deficits could also be accounted for by the manner by which departments do their budgets. Each year end, they will spend money frantically fearing that any leftovers would indicate they don't need the money in the first place. Otherwise,  next year's budget will be scaled down. No department heads want to have scaled down budgets.
More importantly, whenever the state presents its budget, less emphasis is placed on strategies to increase revenue. Tax base, tax collection. But you can't squeeze blood out of stone. What about non tax income? Government investments are one. But if your GLCs are managed by nincompoops, you can't expect to rake in money. Hence you are doomed.
I never questioned though, the deficit portion that is spent on the needy. The expenditure I termed and used as transfer payments. Subsidies going to free loaders- I object.
When Minister Idris Jala made his doomsday predictions, I questioned his blanket denunciation of subsidies, in particular those going to the needy. His predictions created havoc leading to contradictory statements coming from the 15th Floor of the MOF. He accepts the outcomes predicted based on an economy growing at 3% p.a besieged by a deficit rate growing at 12%. He assumes further, government ministers do nothing to address the situation other than enjoy some musical soirees at PETRONAS Philharmonic amphitheater or the PM's plush residence.
I think the PM will of course do something. Dropping Idris Jala is one option.
Idris is perhaps an unregistered member of the deficit hawks. In particular those who sanctimoniously declare we should stop giving subsidies to the poor but at the same time say nothing when there are ideas to build a new parliament building, spend more on constructing the king's place. I am not sure whether the cost has escalated from 400,000,000 to over RM 800,000,000. For I hear whispers that the actual expenditure has gone up to 1,200,000,000, 1.2 billion. The same voices become mute when told of Felda's dwindling cash reserves and the appointment of Felda's cash reserves to some bizarre applications as revealed by Minister Ahmad Maslan.
What do you call them? They can only be termed like what the economist Paul Krugman described as hypocrites, pure and simple
Perhaps the PM should ask Ahmad Maslan to go down to the grassroots, ask them whether they support cutting subsidies or they would rather object to the escalating cost of the new istana, or the building of a new parliament or are they happy with Maslan's explanation of Felda's disappearing cash reserves.


Anonymous,  18 June 2010 at 19:51  

Dato, you hit the nail right in the middle of the head. If only the current administration can see as clearly as you do. It would have made a difference for the betterment of all Malaysian.

DUMNO,  18 June 2010 at 20:29  

Datuk, with the kind of criticism you are hurling against your party, it is unlikely you will be selected again to stand for election so you will not be able to bring reform to this misformed UMNO.

Ariff Sabri 18 June 2010 at 20:35  

there are so many options and alternatives

Anonymous,  18 June 2010 at 20:44  

On the subject of subsidy.

You also need to ask one question. What is the net subsidy per capita?

You need to consider
- net transfers to the citizen*

- net transfer to the government from the citizen (in other words tax direct and indirect)

*above and beyond what citizen 'legitimately' earn in labour market

A good example would be the case of Proton. Do the govt calculates the 'tax' to the people when people buy a Proton when they can otherwise buy a cheaper car (in this case the citizen is subsidizing the Proton i.e. the national car...)

This is very difficult....I think this would be a good topic for a PhD

Mamat (An Anonymous Malay in Ctberspace)

Anonymous,  18 June 2010 at 21:59  

Dato SAK47
There is nothing wrong in deficit spending if the deficit creates an asset that will generate future income streams or add to the quality of living. Deficit spending should not be for "transfers".
Development expenditure in Malaysia is deficit spending. If it is used for creating assets that are of value to the economy no one will object. Like capex in expanding the capability of corporations. But you are right that
a lot of our so called development expenditure is political "pork barrel" as the Amercans term it.
Transfer subsidies should be part of the operating budget since we do have current account surpluses. By eliminating such subsidies the BN govt. is trying to create additional pork barrel for itself!

Anonymous,  18 June 2010 at 22:27  

Dato ... you are more and more frustrated as you progressed.

Expect to be more as more issues arise. Currently it is bad time when government lacks money and corporate report huge loses for last years' accounts. Taxes collected would be low.

More and more issues will arise from most of the GLCs .. just watch.

Only hope you still have those energies of frustrations left half way through. LOL

Suggest you take some Tongkat Ali or Ginseng to pep up your energies. Hope your blood pressure is still okay.

Ariff Sabri 18 June 2010 at 23:18  

anon at 22:27

i assure you i am not all frustrated. i am angry yes- at the hypocrisy of people using the powerless as an excuse to justify things.
no sir, you take the ginseng and tongkat ali- i have never used them.

PANJI HITAM 61 18 June 2010 at 23:54  

Anon 22:27,

Dato Sak is not alone. They are many like him, including me.

I have a saying, it is ok to be fed up and be frustrated but we shall never give up.

Based on my experience, I sleep easy at night after battles but the guilty ones are worried sick knowing that one day they will be exposed by people like us.


Anonymous,  19 June 2010 at 00:05  

the hypocrites will be found out...even if its not not in their lifetime.

You can lie only too often.

The men in the street are restless..struggling to survive and sees the future as one big haze.

But you and your band of arse lickers parades in Gucci splendour to shake our hands,to drink coffee with us..just so RTM can take videos of you acting as a common man.

But your heart and soul have been corrupted by the decades of abuse.

You and your band of arse lickers will get your just rewards.

We will not allow our lands,our future our children and the children of our children to be raped and pillaged by your unholy alliances.

God will be with the innocents,the oppressed and those who fear.

Anonymous,  19 June 2010 at 00:44  

Salam Dato',

I just want to say that I am 100 per cent with you in this matter.I am not just angry, but bloody damn angry not only 'at the hypocrisy of people using the powerless as an excuse to justify things' but also at those irresponsible people squandering wang rakyat with such abundance and racklessness.

At the rate they going now I think the country will go bankrupt sooner than predicted date.

Askar Tua

Anonymous,  19 June 2010 at 01:30  


I think you are a bit unfair.
I don't mind if you criticise UMNO's wrongdoings and exposure of any discrepancies will be good but to label all UMNO members as bad is too stereotype.

It takes a brave person like AK47 to admit UMNO's shortcomings and for him to draw attentions to their faults should be applauded than condemned.

Continue your journey, Tuan . Many people admire and laud your bravery and honesty


sniper,  19 June 2010 at 03:41  


You're an elected Pekan Umno man, yet you are nothing more than a Johnny come lately guy.

Maybe in Pekan, water is thicker than blood.

syedhs 20 June 2010 at 01:18  

I will probably vote for UMNO in the next GE if the likes like you Dato' Sak is chosen to be the ADUN/MP candidate.

Bill Gates once said, some people are afraid of smart people, some others would love to be outsmarted by them but remain at the helm - something like that, don't want to bother myself to google to double-check.

Bob Tutopoli,  21 June 2010 at 18:20  

Kalau tentang isu subsidi ni, banyak bekas pemimpin negara atau bekas Perdana Menteri yang turut setuju dengan isu subsidi ditarik, dikurangkan atau distruktur semula. Nampaknya cuma PM Najib yang berani membuat keputusan.

Kalau ikutkan hati, kita orang memang tak rela subsidi ditarik. Tetapi, berlakunya kebocoran, ketirisan, ketidakcekapan malah rakyat asing turut menggunakan kemudahan awam seperti sekolah dan hospital... Mana boleh?

Nasiblah kalau Datuk Idris tolong tengok-tengokkan proses pengagihan subsidi dirancang, diselaraskan dengan cara yang betol walaupun langkah2 dan tindakan2 ini sukar diterima masyarakat majmuk negara kita. Tetapi alhamdullilah sebagai Kerajaan yang bertanggungjawab, kita orang percaya golongan yang kurang berkemampuan tidak akan diketepikan.

PM Najib, teruskan usaha gigih GTP yang lebih lebih lagi membantu dan menjamin rakyat berpendapatan rendah. Kita orang sokong penuh!

Anonymous,  24 June 2010 at 18:33  

atleast with idris jala in cabinet, he is brave enough to say things as it is and not mince his words like how so many others do (includin MOF who's trying to paint a prettier picture of subsidy amount by not taking into considertaion subsidies by PETRONAS etc)
dont think there's been any other minister whos dared to come up to say that we are in the pits and something needs to be done now!

Anonymous,  24 June 2010 at 19:37  

We must be glad that we have people like DS Idris coming out and saying it as it is and not having it covered as we are all used to. It's a refreshing change and breathe of fresh air to have individuals like him not fearing about his reputation.

The worst case scenario presented was a way to wake the rakyat up and reveal the facts of what could happen in the future. Therefore, the time for the government to act upon the scenario is now. The situation will only become worse if no actions are taken.

At the end of the day, we only want a better future for the upcoming generation.

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