I think this will be my final comment on the Budget 2023.
First of all this Budget clearly shows the really coalition nature of the government. Quite obviously there are inputs from almost all the main partners in the coalition government. You can even discern the better suggestions from the less good ideas in this Budget and you can link it to which coalition partner was behind them.
Although the coalition government claims a 2/3 majority (which has not been tested, that voice vote was not even recorded in the Hansard) their 148 seats in Parliament are fragmented. DAP with 40 seats is calling more of the shots.
The word "Madani" has been added just as a consolation to the Madani man. There is nothing too Madani about the Budget. I actually see more of the DAP's 40 Parliamentary seat "thumbprint" in the Budget.
Obviously the Madani man does not have as much say - which is all the better because he aint too good with the economy, finance or even with numbers.
For example (I double checked) that last Budget presented by Zafrul in October 2022 was for RM332 Billion. Not RM272 Billion. Here is a snapshot of Zafrul's Budget: 
That RM272 Billion that was mentioned was Zafrul's figure for "Operating Expenditure" only. Here it is:
Maybe too many big numbers have got the Madani boys confused.
Other than that not so good idea about that port on Carey Island (Anthony Loke DAP?) I believe the DAP (Nga Kor Ming) have contributed some excellent ideas on local government and business registration. The business community will be relieved.
Overall the Budget is not too painful and neither is to too silly. It is business friendly. As I said, you can see the DAP's thumbprint on the Budget. The business of Malaysia is business. So what is good for business is good for you and me.
Lets wait for Monday and see how the Kuala Lumpur Stock Exchange will react. I think the Bursa will react positively to the Budget.
From this chart ABOVE (from the MoF) 55.1% of the Budget is funded by Income Taxes (38.5%), Direct Taxes and Indirect Taxes. That is about RM205 Billion (out of the total RM372 Billion).
Folks, especially the Civil Service, please keep this figure in mind for the rest of this year.
THE TAX COLLECTION IN 2023 WILL BE ABOUT RM205 BILLION. THIS IS THE GOOSE THAT LAYS THE GOLDEN EGGS. 205 BILLION GOLDEN EGGS.
And how will that RM373 Billion be spent? Look at that second chart above (WHERE IT GOES). 32.2% goes to Civil Servants emoluments, pensions plus subsidies and social assistance (grand totalling 43.5%).
That is RM162 billion. This amount is bigger than Income Tax collection which is about RM143 Billion only. This means even Income Taxes collected by government is not enough to pay Civil Servants salaries and pensions.
The government will have to borrow about RM100 Billion to pay for Budget 2023.
So let us be thankful to that goose that lays the golden eggs.
May I kindly request all the Civil Servants to do your best to make sure that goose can lay more golden eggs? Especially the Civil Servants at the State levels (pihak berkuasa tempatan).
Please expedite the approvals for business licenses, please expedite development project approvals, please expedite building plan approvals, please expedite transfer of land titles especially lease-hold lands, approvals of strata titles etc. Just speed everything up.
This way the goose will be able to lay more golden eggs and then the government can pay the Civil Servants even more salaries, pensions and cash payments.
Its an ok Budget. Now lets get back to work quickly. There is much to do.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.