The coming national budget for the year 2009 which will be presented on 29 August 2008 should be all under full attention. Which it will be the first budget tabled by Barisan Nasional federal government after the loss of 2/3 majority parliament seats on March 2008.
Topics to be taken as consideration:
1. National financial deficit
Prime minister has been focus on reducing the financial deficit since his appointment as the successor of Tun Mahathir to ensure the financial condition of the country is well enough for the development of economy. However, it is a big question on whether to focus on reducing deficit or to table a well benefiting Malaysian budget.
2. World crude oil price and nation petrol retail price
With the current down trend of world crude oil, it is now the best time for the government to consider a reduction on the nation petrol retail price to encounter the current stressful high inflation rate recorded for the two consecutive months upon the petrol price hike.
3. BN game plan after general election
Since losing 2/3 majority in the parliament house and hike on the petrol retail price, it is should be the right time for BN government to improve their reputation and supports amongst Malaysian before the independent day.
4. Historical inflation high
Consumer Price index has been in a high level for the last 2 months after the petrol retail price hike to RM2.70. With this trend keep on, it could mean that the burden of living cost for the general public will definitely going sky high.
5. Non-performing loan concern
Although the central bank has decided not to increase the interest rate after the lately meeting, all commercial banks have start to be extra caution on loan facility approval in order to ensure the crisis of Non-performing loans will be happened again.
6. Pressure on central bank for interest rate hike
Since the CPI and financing risk moving upward, central bank has been under pressure to increase the interest rate although governor was not agree with it but it should be the time for central bank to pass “the ball” to the ministry of finance.
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