Hornbill Unleashed

October 25, 2013

Wastage, ballooning debts and expenses

Raja Ahmad Shahrir

  • In the first of a two part series, a research associate from Institute Rakyat addresses issues on Budget2014.
“What you cultivate during the next seven years, when the time of harvest comes, leave the grains in their spikes, except for what you eat. After that, seven years of drought will come, which will consume most of what you stored for them. After that, a year will come that brings relief for the people, and they will, once again, press juice (olives and grapes).” Joseph: 47-49, Quran

As the lesson from the story of the prophet Joseph goes, livelihood is a cycle of economic ease and hardship. Keep during the good times, and sustain during the bad. With patience and fortitude, the good will eventually rise again. (more…)

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…)

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