A bankrupt Malaysia under Pakatan rule?
KUALA LUMPUR – Several bloggers have picked up a provocative article discussing about Malaysia’s state of economy if and when Pakatan Rakyat takes over Putrajaya.
The article mainly discussed on the promises which have been made by the opposition which targets young, first time voters, who make up the bulk of the more than two million newly registered Malaysians on the electoral roll, and the middle class in general.
The article says :The first was a promise to write of all National Higher Education Fund (PTPTN) loans and provide free university education, and the latest, a policy that will see a reduction in passenger car prices.
In a way, this is a promise to the young that the coalition can assist them in increasing their disposable income because when the two expenditures (PTPTN loans written off and cheaper car prices) these group of people would have more to save and it will be easier to spend on other things.
However, a pertinent question was asked : How do they (the opposition) hope to pay for these pledges?
The article says : If this question does not require answering, then politics would be an easy game. Promise people everything under the sun, sit back and enjoy watching voters swing your way – hook, line and sinker. But we do not live in a world where the electorate believes they can get everything for free.
The article also mentioned about fiscal discipline and how it is doubtful that this is high on the opposition’s agenda. It elaborated on the importance of fiscal discipline during the time when sovereign defaults and bailouts
“They have not really explained how they are going to pay for its electoral promises. And just to put it on the record once again – its electoral promises amount to a whopping RM206.5 billion in the first year alone.
The article also highlighted : “Let’s just put the cost of the opposition’s promises into context. The federal government budget for 2012 was RM 232.8 billion. The opposition’s electoral promises alone account for almost 90 per cent of the total federal government’s budget.”
“So if it were to fulfil its promises in the first year of office, the government would effectively not have enough money to pay the salaries of teachers, doctors, nurses, police and army personnel, let alone have the funds for building roads, schools, hospitals or providing welfare assistance to the poor.
Most of the money would have been used to deliver on its Jingga promises.
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