Layman's understanding of the 2012 budget.

Subject: A LAYMAN'S INTERPRETATION OF NAJIB'S 2012 BUDGET

Being only a retired military officer, I may be blind to the economic facts, but certainly not stupid to swallow a pack of untruths (I do not like to use the word lies). Firstly, a bunch of 'one off" handouts that mainly makes the civil servants, soldiers,policemen,pensioners happy. Then some populist moves across the board to give everyone hope.

Now, I wonder and ask some searching questions: 1. Is there a long term investment beyond 2012 in the budget? Nyet,Nadai,Nien,Bo liau,Tadak,Yillai!!!! So, is it wrong for me to assume that the whole idea is to con the people into an election victory and then do the fire fighting/damage control etc. later? How often have you heard recently from govt depts, "Allocation ada, duit belum terima". Here, they were playing a mahjong game, with the skills of a Tai Chi exponent. It gets us by, believe me, but it doesn't solve the problem. 2. How can Jibby confidently predict a 5 to 6 % GDP growth in 2012 to "afford" the expenditure, when the world is on the brink of an impendingdouble dip recession? I would guess that 4 to 4.5% would be more realistic at most. Now here lies the biggest failure.

THERE IS NO CONTINGENCY WHATSOEVER IF THE RECESSION KICKS IN!!!! Remember, failure to plan is planning a failure. 3. How is the deficit gap going to close? There is no clear cut plans onprudent spending against added revenue collection. The Capital Gains Tax increase is a drop in the ocean. More money can be collected from stamp duties due to the volume of transactions anyway. Yes, there is transformation; from one area of unproductiveness to another area of unproductiveness. Budget deficits translate into debts. Debt servicing was RM12.8 billion in 2008. For 2012, it is estimated to be RM20.5 billion - an increase of nearly 60%." Let's do the math-take interest rate at 5%, RM12.8 billion debt service charges in 2008 would make federal government debt at RM256 billion.

 Now with debt service charges at RM20.5 billion, the federal government's debt is projected at RM410 billion. This is an increase of RM154 billion from 2008 to 2012, an average increase of RM38.5 billion per year. That would now be the nation's annual actual deficit!!!!! Yes, I have tears in my eyes too, because my children will have to pay for it. 4. Where is Jibby going to get the money? Yes, from us, my friends, the long suffering 1.7 million tax payers. The long awaited GST will be shoved in after the election. Mark my words.The EPF (Employees Provident Fund) and other government-linked funds will be asked to do national service by investing in debt papers issued by the government. Again, a case of using the peoples'money to bail out a financially weak government. So, in essence I say, look at the forest my dear friends and now tell me how they are ruining my beloved Malaysia. Call me a pessimist, non believer, not a risk taker etc. but I ask- CAN YOU RUN A COUNTRY ON BORROWED TIME? The answer is YES! If you are a leader living on borrowed time.May God Bless Us All.