Wednesday, September 12, 2007

Cooked-up 2008 Budget Figures that reduces the Budget Deficit to 3.1%; What will the cooked-up response be to the methodology used?

The Cooked-up 2008 Budget Figures that reduces the Budget Deficit to 3.1% Now what will the cooked-up response be to the methodology used as in the Bumi Equity figures?

Sep 12 2008ABOVE: Malaysiakini report (details H E R E) attributing to DAP leader's Lim Kit Siang differing budget figures was first raised in Jeff Ooi's Blog (see details below). Jeff is now a DAP potential MP aspirant and left it to his DAP boss to raise the matter in Parliament. And Bernama's in the face of hard figures put up a brief report on this (see bottom).

The budget figures have been revised umpteen times before they settle on a certain figures with the aid of the powerful computers in MOF. The fiddling of the final development spending figure of RM40 billion figure to give the desire "feel good" budget deficit 3.1% must have been done much earlier as the Treasury's Economic Report was prepared earlier than the final version of the Budget figures read out by PM Abdullah.

Is this the same problem with the Bumi equity percentages that was hotly contested by Dr Lim Teck Ghee that cost him to sacrifice his job?
The Cooked-up 2008 Budget Figures that reduces the Budget Deficit to 3.1%

From Jeff Ooi, Posting H E R E dated September 12, 2007

Budget figures & Abdullah's 'magical thinking'

Those who had applauded Abdullah Badawi for further reducing budget deficit from 3.2% of gross domestic product (GDP) in 2007 to 3.1% for the next fiscal year should take a re-look.
Singapore business newspaper has unearthed a discrepancy in the allocation for development spending that derails the figures that determined budget deficit. Economists are asking: Is Abdullah's budget deficit actually shrinking or soaring?

SOURCE: Singapore Business Times, September 11, 2007
According to Business Times Singapore, the discrepancy is between figures in the Treasury's Economic Report (2007/2008), read in tandem with the Budget, and Abdullah's actual budget speech.
The Economic Report and Abdullah are consistent in that -- despite the record spending at RM176.9 billion -- they both maintained the federal budget deficit will continue to shrink from 3.3% of GDP in 2006 to 3.2% in 2007, and 3.1% in 2008. But the inputs used to arrive at the budget deficit estimated for 2008 were arithmetically conflicting and glaringly non-aligned.

In the Treasury's Economic Report, the figure given was RM40 billion (see ABOVE), 2.1% lower than the figure in 2007 and indicating a slightly contractionary budget.

SOURCE: Abdullah's actual budget speech

However, in Abdullah's speech, the figure given was RM48.1 billion (see ABOVE), which is a record number and more than 15% higher than in the previous year.

"That's impossible," an economist at a Malaysian bank was quoted as saying by the Business Times. "The Economic Report states quite clearly that a deficit of 3.1 per cent would be attained on development spending of RM40 billion and not RM48 billion." If that mystifies economists, why didn't our business editors alert us? This is probably the first time a Malaysian PM's estimate for the budget deficit has become doubtful.

= = == Bernama's brief report; September 12, 2007 20:34 PM
Kit Siang Disputes Figures In 2008 Budget

KUALA LUMPUR, Sept 12 (Bernama) -- Opposition leader Lim Kit Siang Wednesday sought clarification from the government over the difference in the figures for development allocation in the 2008 Budget tabled by Prime Minister Datuk Seri Abdullah Ahmad Badawi last Friday.
The DAP MP for Ipoh Timur claimed that Abdullah, when tabling the budget, announced an allocation of RM48.12 billion for development whereas the amount stated in the Economic Report 2007/2008 issued by the Finance Ministry was only RM40 billion. "This shows a difference of RM8.12 billion and the government should explain why this occurred," he told reporters at the Parliament lobby. Lim, who raised the matter during the debate in the Dewan Rakyat today, said a difference of RM8.12 billion was a big amount and could cause the
government to have a deficit budget of 3.1 per cent to 4.6 per cent.He said the difference in the figures was also highlighted in the Singapore Business Times.
= = =see previous related post H E R E ON


==== = = see also the coming post preview H E R E on the
Cooked-up 2008 Website that provide the Cooked up Batu Burok Photos espcially the "flag burning" photo


Post a Comment

<< Home

Get complete protection against viruses, worms and Trojan horse programs – CA Anti-Virus 2008! Click here for cheap hotels
This is a Flickr badge showing public photos from Multidimid. Make your own badge here.
Blogroll Me!

Your email address:

Powered by FeedBlitz

Add to Google Add to Google