The day before yesterday, Malaysiakini's journalist called me if I got any information on the 2010 Budget, the PM is about to announced tomorrow, but sorry, I'm not as privileged as some people who got close connection to the Finance Ministry.
Anyway, in my view, since this is DSN's first Budget as PM, he is facing a tough challenge:
1. Current Deficit is already 7.6% of the GDP, anymore spending will increase our Deficit to at least 8%
2. Government's coffer is receding fast with more spending. More to spend next year with 10th Malaysian Plan.
3. Dilemma to raise or reduce tax. Raise - out of favor among, reduce please a lot of people; Corporate Tax, raise - lower profit for corporate, reduce - reduce govt's source of fund.
4. Sin Tax; tax on tobacco already increased recently.
What the govt can do is to prop up the GLC's either to make a higher profit or divest the companies and keep a "Golden Share".
Just wait for tomorrow at 4p.m.
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