Banking on bankrupcy

Ministry of Finance released their analysis of the Opposition Pact’s 13GE Manifesto; the Federal Government fiscal deficit would rise from the current 4% of GDP to 11.5%. Borrowings would rise to 62.5% of GDP.

What is most horrific is that Federal Government would be insolvent and unable to meet financial commitments. This include the monthly emoluments bill for the civil servants’ salary and pensioners.

So many people already said thet the Oppostion Pact’s 13GE Manifesto with goodies to give away in term of subsidies, writing off debts such as PTPTN student loans and reduction of import on automobiles and much cheaper subsidised fuel and energy are very unrealistic. The total lot would burn a very deep hole in His Majesty’s coffer of RM 49.5 billion. Malaysia would join the Euro-zone club of doom in the likes of Greece and Cyprus.

The Federal Government under the current BN Chairman Prime Minister Dato’ Sri Mohd. Najib Tun Razak already managed to reduce the fiscal deficit 6.7% of GDP in 2009 to 4.5% of GDP in 2012. The Federal Government committed further to reduce the percentage by another 33% to 3% of GDP.

In their fantasy to mesmerise the Malaysian voters for the upcoming 13GE, failed Finance Minister and Economic Adviser for Selangor State Government Anwar Ibrahim and his band of politically bankrupt with unrealistic offerings, in their short-sightedness to pander into some gullible and simplistic Malaysians. However, the majority are matured and wise enough that their 13GE Manisfesto is mere a wet dream.

Their track record in Selangor the past five years is proof that not only they cant manage, they never fulfill their promises. Goodies like ‘free 20 cubic metres of water’, ‘stipends for single mothers and kindergarten going children’ and more never did materialise.

The fact that they claim the ‘savings of 24% in Selangor’ is not able to the extrapolated to the much larger and macro Federal Government budget management. This is because the Opposition never did detail the savings and prove that there were real savings.

Furthermore, some spendings were never in State Government budgets. Such as security, defense, health and education. The unrealistic comparisons are only evidence that they are not accountable.

Opposition Pact is about politically bankrupt, planning to bankrupt the nation in their desperation of giving ‘the minority imposing their will against the majority’. In the bigger picture; neither they nor their economic plans are tenable nor bankable. Literally.

Published in: on March 29, 2013 at 19:30  Leave a Comment