Saturday, June 12, 2010

Of Deficits & Bureaucracies

Cut deficit by reducing bureaucracy, says DAP

OPPOSITION MPs questioned whether the Government could reduce fiscal deficit to 3% of the Gross Domestic Product by 2015, saying it would be a “very challenging target.”

DAP national publicity secretary Tony Pua said this was only achievable if the Government changed the way it worked and the world economy was strong for the next five years.

The DAP PJ Utara MP said the easiest way to reduce deficit was to tax the people and cut subsidies.

“But what really needs to be done is for the Government to transform the way its machinery works. At present, it is a huge bureaucracy,” he told reporters at the Parliament lobby after the tabling of the 10th Malaysian Plan.

Pua said the Government’s operating expenditure, which takes up more than 70% of the Budget, was too high.

“And this is despite the huge increases in revenue over the past two years. In the next few years, there will be a decline in revenue from the oil and gas sector but operating expenses will maintain, causing stress to the deficit,” he said.

He also said the 10MP was a “rehashed”version of the previous Malaysia Plan, pointing out that the public-private partnership, high speed broadband and transportation plans had been part of the Ninth Malaysian Plan.

For the full article in The Star, click here.
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