Hornbill Unleashed

October 19, 2011

Think-tank: RM1 trillion debt by 2020 a possibility


Should the federal government’s debt grow at a rate of RM50 billion annually, it could reach RM1 trillion in 2020, said independent think-tank Research for Social Advancement (Refsa).

This mind-boggling scenario was explored in Refsa’s focus paper on Budget 2012, which warned that Vision 2020 could “crumble into broken dreams” unless the government exercises financial prudence.

The current deficit stands at RM437 billion, which Refsa points out is more than double the RM217 billion budget deficit reported in 2004.

“Put another way, the government has added on more debt in the six-and-a-half years since 2004 than in the 47 years following Merdeka,” reads the paper.

Between 2007 and 2011, the deficit has been growing at about RM34 billion annually on average.

But assuming this increases to RM50 billion in additional debts annually, Malaysia can expect its total debt to double again by 2020 to RM1 trillion. (more…)

October 9, 2011

‘Unhealthy to overspend’

Filed under: Alternatives,Politics — Hornbill Unleashed @ 12:00 AM
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Teoh El Sen

An economist is worried with the huge budget allocation and feels that the government should be prudent because of an expected economic slowdown .

An economist has expressed worry over the country’s spending in Budget 2012, describing the huge increase of 9.4% to total RM232billion budget, from RM212 billion last year, as “not so healthy”.

“This is the largest budget in the whole history of Malaysia, though of course we are expecting it to increase every year…but this is a huge increase and that’s not so healthy,” said Federation of Chinese Assocation Malaysia (Huazhong) deputy secretary-general Dr Chin Yew Sin.

“The government should be more prudent in the face of the expected economic slowdown next year and cut down on operating expenses,” said Chin. (more…)

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