(Updated)
1. Ballooning budget deficit – Parliament has been presented with two sets of supplementary estimates, the second supplementary estimates for 2009 totalling RM11.36 billion (i.e. RM8.98 billion for Operating and RM2.39 billion for Development), after the earlier first RM10 billion supplementary estimates and the first supplementary estimates for 2010 totalling RM12 billion for both operating and development.
We are debating the second supplementary estimates for 2009 Budget which will be followed by the debate on the first supplementary estimates fo 2010 Budget.
These two sets of supplementary estimates before the current meeting of Parliament are most surprising, as the country was told by the Prime Minister cum Finance Minister Datuk Seri Najib Razak when presenting the 2010 budget on 23rd October 2009 that the fiscal budget of the Federal Government had reached a peak at 7.4% of GDP in 2009, and that the fiscal budget is expected to decline to 5.6% of GDP in 2010.
With these two sets of supplementary estimates, Malaysia’s budgeting has again gone awry with the budget deficit in 2009 shooting to as high as 7.9 per cent of GDP in 2009 and over 7% in 2010.
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