Back in January, the official deficit projection for 2015 was revised up by the government to 3.2% of GDP from 3.0% due to the falling energy prices. I concluded then the new target was achievable if government revenue would increase by at least 1.2% YoY. It was a reasonable target eight or nine months ago. […]

People are asking me if the Malaysian government’s new 3.2% deficit ratio target is achievable.  I have read in the news that several politicians are skeptical about the target. I do not remember who said that but I feel the sentiment is shared by many. But the only way to really answer this objectively is to run […]

The Prime Minister announced the government’s plan to slacken its 2015 deficit target from 3.0% of GDP to 3.2%. While it is an easier target, it is still a cut from the expected 3.5% last year. I think we can relax it further but the revision is in line with my sentiment although not fully. There are several measures […]

I have been supportive of the government’s attempt at closing the deficit. I do celebrate the significant fiscal progress made over the past five or six years. In retrospect, it was easy to back the cuts because the times were generally good. After a recession in 2009, the Malaysian economy grew quite well almost every […]

I am sure you have seen this before but just in case… And the surplus was not because of Anwar Ibrahim. It was something bigger than him. It was the Roaring 90s. Just a short remark: the recession of the late 1990s was the worst Malaysia has ever experienced, but it is interesting that in […]

I am curious at some of the projected fiscal deficit figures which have come out from the internet. A number of them are fanciful. One that I have read has the deficit under Pakatan Rakyat manifesto rising to close to 12% of nominal GDP while BN would be as low as 4%. The 4% figure […]

I have been doing some preparatory work for a report on the 2013 federal government budget. The budget will be tabled at the Parliament this Friday. In the course of doing so, I have come to wonder if the comparison of budget deficit (as typically understood) across governments of the world is really fair. Specifically, […]

I handle my finances conservatively. I spend very little for someone my age and my profile. In fact, I impose a sort of limit on my spending. I am conscious of it and get mildly nervous if my total spending grows too fast even when I can more than afford it. I probably do buy […]

[2561] What inflation?

Kapil Sethi has a really odd piece yesterday in The Malaysian Insider yesterday. It started pretty alright by discussing crime but the strangeness began when he tried touch the realm of economics: At a deeper level though, this desperation points to a changing politico-economic environment that is forcing such radical shifts in behaviour. When there is […]

The failure of the supercommittee to agree on the distribution of US budget cut is not much of a news. It has been expected. Leaks of how difficult it was to reach a common ground made it way to news reports . More importantly, the impact of the failure is not too big because the fail-safe […]

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