Budget 2004

[chenchow]

With the 2005 Budget going to be presented by our Finance Minister this coming Friday, 10th of Sept, guess it would be appropriate for ReComers to discuss the expectations of the budget, and this thread would also be the thread to discuss various incentives, taxes etc of this budget.

[misled_youth]

Just as how The Economist has a Big Mac index, misled_youth has a Char Koay Teow index.

MY CKT index has been a very accurate measure of infaltion and GDP growth (assumming that the two values are directly correlated).

Based on my superior (sic) CKT index, I predict that Pak Lah would be going for fiscal expansionary policy, to boost GDP growth, at the expense of the little man.

All newspapers would say, Wah lau! Good lah! More jobs! Less taxes!

Prof Jomo et al will be screaming INFLASI!!!

Then again, take this with pinch of salt.

Any other predictions?

[Schye]

Ermmm...
continues the Look East Policy so that I can continue my scholarship :wink:

[labulabu]

Errr...cut down tax imposed on Nasi Lemak and highlight Nasi Lemak as one of the malaysia main export productSSs :roll: ....

[misled_youth]

Seriously though, taking into consideration the strengthening USD, Pak Lah has problem in his hands.

If USD continue to appreciate, our exports will drop, keeping in mind our ringgit still pegged.

Export drop means our GDP growth will be less.

This is why I think Pak Lah will go expansionary. Decreasing interest rates, encouraging consumer and industrial spending.

DEAR ECONOMIST: If I'm wrong, please correct me and stop me from rambling like an idiot :p

[__earth]

I heard the govt wants to tackle the deficit. Therefore, I don't think the govt will go with expansionary policy.

Another thing, I bet agriculture gonna receive a boost.

Whenever it is, hold your gun. The budget hasn't been tabled yet.

[kucingbiru]

any increase on tobacco tax?

[jiinjoo]

More money for the schools!!

[pandaboy]

any increase on tobacco tax?

I hope for an increase of 300% :twisted:

[gal_flower]

from wad i heard, a new tax will be introduced--VAT (Value Added Tax). It works almost the same as the sales tax that Singapore and the States has...meaning that goods will be taxed as well. All goods except for 'barangan keperluan' like sugar, rice etc. consequently, income tax will be reduced. but this introduction may only be official in two years time because the people needs to get use to the idea of payin tax for their goods...

[digimushu]

WHATT???

Argh, thats the good thing in M'sia last time...u only pay what the price tag is, now its gonna be 5-6% more...damn

[misled_youth]

from wad i heard, a new tax will be introduced--VAT (Value Added Tax). It works almost the same as the sales tax that Singapore and the States has...meaning that goods will be taxed as well. All goods except for 'barangan keperluan' like sugar, rice etc. consequently, income tax will be reduced. but this introduction may only be official in two years time because the people needs to get use to the idea of payin tax for their goods...

Like GST in Singapore and Australia.

GST = Go Squeeze Them

[chenchow]

I guess one thing that the government would do would be to increase the budget of agricultural and agro-industry, higher education, biotech, crime prevention which seems to be the crux of current administration. However, I do believe that the entire budget would not be expansionary, as _earth mention that the government is going to reduce the defisit. Perhaps a 2-3% deficit of GDP would be a good step ahead.

What's the current deficit level?

From what I understand, the economic growth from the past 5 years were boosted a lot by government spending (i.e. fiscal policy)
that resulted in bigger deficits. That's a nicer way of saying that the government artifically boosted GDP growth and in the process racked up big debts.

The VAT tax should be a good idea to encourage people to increase savings, but I'm not an expert on that issue to give detailed comments on the pros and cons. Anyone here doing economics relating to VAT/GST flat taxes?

There has been an idea to simplify the American tax law to tax only those earning $150,000 or more a year on a single flat bracket, and use VAT taxes to cover the rest of the tax revenue. This would increase savings (which in America is currently too low), but would also additional burden to the poor since they spend all their disposable income on buying goods (compared to the richer people who have extra money to save).

[__earth]

I am not sure what's the current level of the Malaysian deficit. In fact, I think the official level for this quarter, let alone this year, has not been report yet. But if I remember correctly, the projected deficit for 2004 was 4.5% of the GDP.

More on deficit, with the govt subsidizing gas and at the same time, the gas price has been relatively high, the deficit should balloon up.

[chenchow]

The highlights of the Budget 2005 :-
http://thestar.com.my/news/story.asp?file=/2004/9/10/latest/18845Budget200&sec=latest

Full text of the budget:-
http://thestar.com.my/budget2005/story.asp?file=/2004/9/10/budget2005/20040910163738&sec=budget2005

[gal_flower]

do u guys know that our country still owes money for the Commonwealth Games? yup...the debt is still not paid up...n tad was approx 6 years ago...

[masterof_none]

Since the topic now is Budget 2005, I close the this thread. and I open a new one on Budget 2005.

Moderator Action : Topic Locked
Reason : out of topic.

http://recom.org/modules.php?name=Forums&file=viewtopic&p=31083#31083