Wednesday, April 7, 2010

Gunners Silenced!

It was reported that parliament is presently debating two sets of supplementary bills being presented. DAP’s Lim Kit Siang was expressing worry that the RM12 billion in supplementary expenditure will swell the government’s budget deficit for 2009 from the official estimate of 7.4 per cent. He also said that the other Bill – another RM12 billion in supplementary expenditure, this one for 2010 – will cause the government to miss its target of lowering the budget deficit to 5.6 per cent of GDP this year (Webpage http://www.themalaysianinsider.com/index.php/malaysia/58862-deficit-to-swell-to-79pc-says-kit-siang).

According to figures provided by DAP, if the supplementary bills are passed, the total expenditure for 2009 will hit RM229.25 billion against revenue of RM176.2 billion leading to a shortfall of RM53.05 billion, or 7.87 % of GDP. And the total spend for 2010 will be 203.57 billion against revenue of RM148.8 billion, or a deficit of 7.12 % of GDP.

A larger than expected budget deficit is likely to derail the Najib administration’s efforts to introduce fiscal reforms. Well, from what I can recall from reading Najib Razak’s many initiatives since he became Prime Minister – he has been spending, spending, spending! The worry is: Can we afford it? Or are we going belly-up?

Lionel Messi scored four for Barcelona as they overpowered Arsenal 4-1 on the night and 6-3 on aggregate to set up a Champions League semi-final against Inter Milan. The Gunners have been silenced.

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