QUOTE(Chrono-Trigger @ Dec 16 2023, 04:06 PM)
I am saying in general, the government can choose few ways to deal with increased spending.
Taxation is not popular because it puts less money in people's pocket. GST isn't popular because everyone gets taxed. But taxation has net effect of decreasing money supply in the system in some ways because there is less ringgit circulating in the market which has effect on consumption and inflation. Less people spend , less demand for good, prices of good fall.
Taxation also increases government revenue and reduces deficit, which investors like as they will see Malaysia as stable. Ringgit will be stable.
If you don't tax, government has no way to get more money but resort to borrowing by issuing debt papers, which has net effect of increasing ringgit supply vs US dollar in market. In long run, our deficit will be high, and debt reaching 1.5 trillion now, which looks very bad for investors. Even local investors are worried about it and convert their Ringgit to USD and SGD, making ringgit depreciates.
You will still get RM2000 in your hand, but that RM2000 can buy very little things.. like what is happening to ringgit vs SGD....
maybe dont spend billions on stealth ships and moral pulis? then dont need to issue debt paper
or is that too hard to understand?
As expected, Hishammuddin did not state any financial cost of the project apart from saying that the vendors of the project have financial commitments of RM4 billion. As the government already has paid some RM6.1 billion for the project, we can assumed that the RM9.1 billion ceiling price will be breached. As I stated earlier, the estimates for the project cost – if it was started in January 2022 – was RM14 billion.
Why is the estimates to restart the project important? The previous defence minister had already told the government will not pay more than the ceiling price (RM9.1 billion) though he did not say who will pay for the higher costs. I am told that Boustead Heavy Engineering Corporation (BHIC) – the parent company of BNS – will pay for the the costs overrun (some RM5 billion) by issuing an Islamic sukuk (bondshttps://www.malaysiandefence.com/cabinet-ap...of-lcs-project/https://www.thestar.com.my/news/nation/2021/10/29/...
Budget 2022: RM1.5bil for Islamic affairs under PM's Dept
WebOct 29, 2021 · Budget 2022: RM1.5bil for Islamic affairs under PM's Dept. PETALING JAYA: RM1.5bil has been earmarked for the management and development of Islamic affairs …
One of the more recent gripes was about JAKIM’s budget, which was increased from RM943 million last year to RM956.6 million this year. And while the Religious Affairs Minister Idris Ahmad had explained that the increase was to cover the department’s operational costs, like rental and programs organized by the department, some weren’t convinced.
Perhaps the biggest gripe about this allocation is that we don’t know why JAKIM needs that much money in the first place, or what they even do with it. Some had pointed out that religious matters are mostly under state purview anyway, so the large budget for a federal religious body is questionable. Others are worried that the money won’t be used to address real problems.
https://cilisos.my/budget-2022-jakim-finas-...y-isis-compare/Global web icon
New Straits Times
https://www.nst.com.my/news/nation/2022/10/838294/...
2023 Budget: RM1.5 billion for Islamic religious affairs, RM500 …
WebOct 7, 2022 · KUALA LUMPUR: A total of RM1.5 billion will be allocated for the management and development of Islamic religious affairs under the 2023 Budget.
This post has been edited by nasiputih: Dec 16 2023, 04:19 PM