Friday, May 28, 2010

Cut the subsidy? Think first about every wasted money in every A-G reports

If the subsidies would be gradually off the shelves, why dont PEMANDU and GOVT see the wasted money thrown out simply from their own offices expenditures?

am7riel.blogspot would like to highlight these never ending stories about again and again ballooned expenses done from various government agencies and offices,to remind the subsidy is not a burden but it needs to be done accordingly so it would be channelled to the the right group.

If all commodities,like price of rice,sugar,oil all are increased, how would we expect the commoners and poorers will survive?

Baitumal is disfunctional,same goes many welfare agencies. They will only act once we query to tv station like what people usually did, report to Bersamamu.Bumpp!!!

I did not yet to explain the impact on multi chains effect once government nod on fuel prices hikes, what is going to happen to the group i mentioned?

So here are all the "necessary" expenditures revealed from Auditor General in year 2009.

Can PEMANDU and Government fix this issue first before educating people that they are burdenened? Could they?

In 2008, the govt paid RM5700 for a car jack worth RM50.
Last year, according to the Auditor General's Report, a government-owned vehicle consumed a tank of petrol worth RM113 within a few minutes.

2 Acer laptops cost a whopping price of RM84,640

Still remember the news revealed by theStar,RM42,320 for a laptop on Thursday October 22, 2009.
Read here,sure you will remember.
http://thestar.com.my/news/story.asp?file=/2009/10/22/nation/4953964&sec=nation

A 17-inch monitor costs RM7,500
A pole platform that cost RM990 was bought for RM30,000
A thumbdrive that cost RM90 was bought for RM480
A cabinet that cost RM1,500 was bought for RM13,500
A flashlight that cost RM35 was bought for RM143
A welding machine that cost about RM20,000 was bought for RM4,1429.

Mara also spent RM2.08mil buying computer software it didn’t need


Not to mention too on wasting money on PKFZ fiasco, then the Bakun dam delayed project and same stories of double track railway from Ipoh to Singapore that have cost Government dearly.

The same happened when Government have procured 2 submarines and 12 helicopters that were not gone through proper tender that was supposed the cost of expenditures would significantly lesser from the amount that they bought.

Did they realized that they burdened more from their misspending rather than putting an excuse holding the subsidies that cost them terribly?

In the end,it is the rakyat who are burdened.Yes, you are correct this is the nations of "People First,Performance Now". It is just a rethoric, isnt?

http://malaysia.news.yahoo.com/rtrs/20100527/tbs-malaysia-subsidies-0fe1d6e.html




Malaysians warned of rising debt without cuts
Reuters - Thursday, May 27

KUALA LUMPUR, May 27 - Malaysia risks becoming the next Greece unless voters swallow subsidy cuts that will see the price of petrol, food, electricity and other staples rise, a government minister warned on Thursday.

A government think-tank charged with producing plans to cut the country's subsidy bill presented its plans to the public in a bid to win acceptance for painful cuts, which have yet to be voted on by the government.

Idris Jala, a minister in the prime minister's department who heads the body advising the government, said that Malaysia's debt would rise to 100 percent of gross domestic product by 2019 from 54 percent of GDP at present without the cuts.

"We don't want to end up as another Greece," he told a roadshow, referring to the European Union member whose debt woes have unsettled global markets. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ (For related factbox on subsidy plans click on [ID:SGE64Q00O] For a related analysis click on [ID:nSGE64O03F] For related graphic click on http://graphics.thomsonreuters.com/10/MY_SBSDY0510.gif) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Malaysia spent 15.3 percent of total federal government operating spending on subsidies in its 2009 budget when its deficit surged to a 20-year high of 7 percent of GDP.

The cabinet discussed the subsidy proposals on Wednesday, but any decision on cuts could be months away, a government source told Reuters. [ID:nSGE64P0AN]

Political analysts and economists say the failure of the government to push through previous subsidy cuts casts doubt on whether it can do it this time, especially with state elections looming in Sarawak, a government stronghold that is under threat from the opposition.

The proposals presented would see petrol prices for the benchmark RON95 blend rise by an initial 15 sen (Malaysian cents) per litre from their current price at some stage this year.

The benchmark RON 95 grade currently costs 1.80 ringgit per litre.

Under the proposals presented by the advisory body, the price of petrol would be hiked some time this year followed by two price hikes totalling 20 sen per litre in 2011 and two more totalling 20 sen per litre in 2012.

In 2013-2015, the price hikes would slow and by the end of 2015, the price of RON95 would stand at 2.60 ringgit per litre, according to the plans that have yet to be approved by the government.

The forecasts were based on a crude oil price forecast of $73.06 per barrel for 2011 and $79.41-$94.52 for 2013-2015.

(Reporting by Royce Cheah and Razak Ahmad; Writing by David Chance; Editing by Liau Y-Sing and Sugita Katyal)

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