Budget 2018 - Grants Increased 71% from RM10b to RM17b !! Why??

Allowing people to hire their own foreign maids without having to go through the agencies is perhaps the best thing in this Budget. There is not much else.

Asking the private sector to increase maternity to 90 days will create more unemployment for women, especially for women who have many children in their lives. 

Young women who just got married will also be less in demand for employment. In Malaysia everything is race, race, race lah.

Which race do you think has more children per child bearing woman than the other races? Their unemployment will increase.

 

This is taken off the Star : 

https://www.thestar.com.my/business/business-news/2017/10/27/economic-report-2018-highlights/#ARZfd8KZ3b6lMxzm.03 

2018 Budget is RM280.25b

RM260.80bil in 2017  

• GDP to slow to 5% - 5.5% in 2018from 5.2% - 5.7% in 2017.

GDP growth by sector in 2018

1. Agriculture to slow to 2.4% from 5.6%
2. Manufacturing to slow to 5.3% versus 5.5%
3. Construction to slow to 7.5% from 7.6%
4. Services to slow to 5.8% from 5.9% 
5. Inflation to increase 2.5% - 3.5% (I dont believe this at all.)

(My comments : The 2018 Budget expects everything to slow down. As you saw in the previous post, Giant is closing down about 8 of their supermarkets around the country. Rumours are that T--co is also facing very slow sales.)

Palm oil RM2,750 per tonne, from RM2,700 in 2017.
For 2018, Brent average US$52 per barrel from US$50 in 2017.
GST collection increase to RM43.80bil from RM41.50bil.

2018 Budget is RM280.25bil 

vs RM260.80bil in 2017

Federal Govt revenue

Revenue increase 6.4% to RM239.86b 

from RM225.337b – tax and non-tax revenue.

Tax revenue increase 2.4% to RM191.57b 

from RM180.19b year ago

direct tax RM127.71b up 6.7% from RM119.699bil.

largest contributor to direct tax company income tax RM72.475bil 

(RM67.822bil in 2017).
Personal income tax higher RM32.234bil (from RM30.09bil)

petroleum tax RM11.445bil (from RM10.937bil).

Indirect tax 26.6% of revenue at RM63.856bil

increase from RM60.495bil in 2017

comprising GST at RM43.80bil

excise duties at RM12.33bil

import duty at RM3bil 

export duty at RM1.4bil.

Non-tax revenue RM48.291b 

RM13.56bil licences and permits 

RM24.588bil investment income.

(My comments : Company taxes and income taxes add up to over RM104 Billion or 37% of the Total Budget. Petroleum taxes and GST only add up to RM54b or 19% of the Budget.   Petroleum taxes are depleting and with the economy just dying, the GST collection will also dry up.  

The gomen really needs to increase the economy's capacity to pay corporate and income taxes.  Gomen mesti membantu orang yang ada kebolehan dan kupayaan untuk menjayakan  aktiviti ekonomi so that mereka akan menambahkan lagi penjualan, keuntungan, pendapatan dan gaji yang akan menambahkan pungutan hasil cukai bagi  gomen. Boleh faham tak perkara yang sangat simple ini. Tidak perlu bergantun kepada GST atau minyak.)

Federal Govt operating expenditure

Operating expenditure RM234.250bil

up 6.5% from RM219.910bil.

emoluments 33.8% at RM79.149bil.
Retirement charges 10.5% at RM24.550bil

Debt service 13.2% at RM30.882bil 

(My comments : Bayar gaji, pencen kakitangan kerajaan dan bayar hutang kerajaan saja jumlahnya lebih RM133B !!  That is 48% of the total Budget of RM280b !!  Maksudnya the Budget is more focussed on providing a source of income for many people, mainly Malays and bumiputra people. This is a very risky and unsustainable situation !!) 

* Supplies and services 14.4% at RM33.621b;
* Subsidies and social assistance 11.3% at RM26.544b;
* Grants to statutory bodies 5.6% at RM13.099b

Grants to statutory bodies, public corporations, international organisations, insurance claims and gratuities 7.2% at RM16.917bil – an increase from RM9.861bil in 2017.
 

(My comments : This is a 71% jump in grants. There are no details how this extra RM7 B will be spent.)

Fed Govt development expenditure for 2018  (RM46 Billion)
 

(My comments : Development gets only 16% of the Budget. Read on.)

RM26.3b for economic activities (9% of Budget).

agri, rural dev, energy, public utilities, trade, industry, transport, communications, environment

Transport 22.8% of economic activities or RM10.479b

Social activities RM11.72b or 25.5% of development expenditure. 

education, training RM5.256b; others RM3.387b; health RM1.91b; housing RM1.167b.

defence, internal security – RM5.2b or 11.3% of development exp.

Defence lower amount at RM3.84b (from RM4.25b in 2017) 

internal security RM1.37b (up from RM1.036b)

(My comments : From a Budget of RM280B, new economic activities get only 9.3% or RM26.3b. That is why the economy is also shrinking. There is less activity for new economic activity.)

External trade:

exports to increase 3.4% to RM947b from RM917b 

manufacture to expand 3.1% to RM769.4b

agri by 2.9% to RM769.4b 

mining by 7.5% to RM86.33b

Broader economy

Average monthly salaries and wages increased 6.5% to RM2,463.

Average monthly salaries of employees according to educational attainment, saw those with tertiary education rise 4.9%, secondary education 5.9%, primary education 8.4%, and no formal eduction 16.7%.

(My comments : What the hell is this? The dumber you are, the higher is your salary increment??  Like this Jawatan Kosong ad here :

end-August 2017 registered foreign workers 1.8m from 1.9m a year ago. 

Indonesia (40.8%), Nepal (22.5%), Bangladesh (12.7%) and Myanmar (7%).

(My comments : The total number of foreign workers exceeds 6 million. Dont bullshit.)