Very soon, the government of Malaysia will be broke if subsidy is continue to be allocated to reduce prices from sugar to fuel. Revenue collected from corporate and individual taxes will be used to cushion the raising prices of commodities and there will be limited funds to develop the country.
Subsidy should be abolished and let the market demand determine the prices of goods. In turn, the government can provide incentives and better relief to reduce the financial burden of the people.
Subsidizing fuel for example, is only making the electricity providers (like Tenaga National) to earn more profits.
At the same time, the government should be aggressive in improving the public transportation system so that the public do have to user cars to commute. In fact, there is also no control on the number of cars allowed on the roads. More cars means more fuels. The government should also study the implementation of alternative energy to supplement power generators which current relied mostly on natural gas and diesel.
As for public spending, it high time that the government practice prudent spending and not only blaming the people for overspending.
Source: The Star: Subsidy exceeds 9MP spending, says Pak Lah
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Sunday, May 11, 2008
Labels: subsidy
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