MCA jabs at Guan Eng's performance when he was finance minister
MCA vice-president Tan Teik Ching has taken a jab at former finance minister Lim Guan Eng’s performance when he was finance minister.
“Lim is responsible for the increase in federal debt which came unsurprisingly with his modus operandi of borrowing a huge amount in loans.
“For example, the issuance of the samurai bond with Japan has plunged the nation into a pit of foreign debts which will be difficult to repay for generations to come,” Tan claimed in a statement yesterday.
He said Lim, who is also the Bagan MP, was "bragging about the Pakatan Harapan government and the positive increase in revenue in 2019" but said there were a few aspects the former minister did not take into account.
Tan said the 2019 Auditor-General’s Report revealed that out of the new loans amounting to RM138.559 billion, almost 60 percent of it, or RM83.05 billion, was used to repay matured debts while only 29.7 percent was used for development.
This practice calls for “serious scrutiny” as it does not make sense to use more loans to cover up existing loans, Tan said.
“At the end of it, debts will accumulate and harm the generations to come. Such a manoeuvre only serves as a facade to prop up their numbers while disregarding the consequences,” he said.
“Lim is responsible for the increase in federal debt which came unsurprisingly with his modus operandi of borrowing a huge amount in loans.
“For example, the issuance of the samurai bond with Japan has plunged the nation into a pit of foreign debts which will be difficult to repay for generations to come,” Tan claimed in a statement yesterday.
He said Lim, who is also the Bagan MP, was "bragging about the Pakatan Harapan government and the positive increase in revenue in 2019" but said there were a few aspects the former minister did not take into account.
Tan said the 2019 Auditor-General’s Report revealed that out of the new loans amounting to RM138.559 billion, almost 60 percent of it, or RM83.05 billion, was used to repay matured debts while only 29.7 percent was used for development.
This practice calls for “serious scrutiny” as it does not make sense to use more loans to cover up existing loans, Tan said.
“At the end of it, debts will accumulate and harm the generations to come. Such a manoeuvre only serves as a facade to prop up their numbers while disregarding the consequences,” he said.
Secondly, he said Public Accounts Committee (PAC) chairperson Wong Kah Woh had revealed that the federal government’s debt in 2019 had increased to RM792.997 billion from RM741.048 billion in 2018, which was an increase of RM51.9 billion.
The debt to GDP also stood at 52.5 percent last year compared to 51.2 percent in 2018, which Tan said refutes Lim’s remarks of Harapan improving Malaysia’s revenue.
Tan also stressed that the issuance of the samurai bond exposed Malaysia to the risks of foreign debt which would place the country in a dangerous position.
However, Tan acknowledged that loans were not inherently bad if used to create economic opportunities and to stimulate the market.
“However, to use one debt to repay another is simply outrageous.
“Without a future prospect for the nation’s growth, such a move will not bear any fruit and only delay the inevitable while adding to the eventual crisis,” he said.
The debt to GDP also stood at 52.5 percent last year compared to 51.2 percent in 2018, which Tan said refutes Lim’s remarks of Harapan improving Malaysia’s revenue.
Tan also stressed that the issuance of the samurai bond exposed Malaysia to the risks of foreign debt which would place the country in a dangerous position.
However, Tan acknowledged that loans were not inherently bad if used to create economic opportunities and to stimulate the market.
“However, to use one debt to repay another is simply outrageous.
“Without a future prospect for the nation’s growth, such a move will not bear any fruit and only delay the inevitable while adding to the eventual crisis,” he said.
Ayam most disappointed that the Twit of a Twat FM did not re-introduce GST, the fairest and most efficient taxation system introduced by an ex-FM, who owes LHDN RM1.7 BILLION of back taxes and now a convicted criminal.
ReplyDeleteThanks Guanee, for killing GST. Today the choir boys dare not make a poop or peep about it. Clearly it as Fair Weather Tax, not suitable for a country like Malaysia as pointed out by Liew Chin Tong.
Of course MCA was also responsible for the introduction of GST, which was needed to plug the hole of corruption. All that was needed to keep MCA quiet was RM40 million a year for TARUC matching grant.
Come on...get real, not just promote Fake News, as your favourite pass time.
ReplyDeleteThe RM 741 Billion foreign debt which the Failed Accountant inherited, which Administration piled debt upon debt, and stole BIllions to fill his Fatty Buddy"@ pocket?
MCA helped line its own pocket all those years.
Undilah Barisan Nasional... I haven't forgotten.
But the idiot will not admit to being part of BN and accumulating all those debts when BN was running wild
DeleteEven the Book-keeper's assistant Tony Pua could see through the Twit of a Twat's amateurish attempt to forecast tax collection in 2021, and confirmed by economists below......ha ha ha....But under the Book-keeper's watch there was record collection, even without the dreaded GST.
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PETALING JAYA: An economist has criticised Putrajaya as being too optimistic in its projection of the revenues it will collect from taxes next year.
Geoffrey Williams of HELP University told FMT the government appeared to have failed to adequately consider the economic consequences of Covid-19.
He said the revenue estimates from corporate income tax was unrealistic because the government should expect profitability to be lower and should brace for the closure of many businesses.
“I find it strange that they expect corporate tax to rebound when it actually fell in 2019 even before the crisis,” he said.
“It’s also optimistic to expect personal income tax to increase when many people will be unemployed or earning lower income.”
He said collections from expenditure taxes and excise duties in 2021 would also be lower than projected because consumer spending was likely to be hit by lower disposable income.
“It will take some time to resolve unemployment and underemployment and people’s income will be affected well into next year.”
Finance Minister Tengku Zafrul Aziz said in his budget proposals yesterday that the government had predicted a take of RM64.60 billion in 2021, nearly a billion ringgit more than the amount collected in 2019.
Williams said this was unlikely as economic improvement would be slow.
“We don’t expect the GDP to recover to the 2019 level until the second half of 2021. Even then, the GDP will still be around 8% below where it would have been without Covid-19.”
But tax specialist Veerinderjeet Singh said the expected increase in tax revenues was reasonable considering the estimated increase in economic growth.
“Assuming that it works, I think businesses should be showing better results and profits,” he said.
However, he said it was “puzzling” that revenue estimates from personal income tax was set much higher than in previous years.
Zafrul told the Dewan Rakyat the government expected a RM42.4 billion personal income tax collection for next year, compared with RM35.9 billion in 2020 and RM38.7 billion in 2019.
Subang MP Wong Chen also questioned the finance minister’s projected corporate income tax collection for next year, calling it “super over-optimistic” in a social media post yesterday.
Speaking to FMT later, he said the economy would have to grow by 9% for the government to expect such a high collection.
“The best growth estimate from the World Bank for Malaysia is 6.3%.
“There was no way that company tax collections for 2020 would be only RM4 billion lower than in 2019 considering the severe economic blow to businesses from Covid-19,” he said.
However, Wong said the personal income tax projection was acceptable.
“Only the top 15% of the working population pay tax. Job losses are mostly among the poor, who are not taxpayers.”
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lge is stupid, but this mca dog more stupid. what is he toking abt?
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ReplyDeleteVery generous budget for the rakyat
100m for Indian
177m for Chinese
1.4 Billion for Islamic affair
4.6Billion for Bumi
6.5Billion Bumi education
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And RM40 million for TARUC matching grant ha ha ha.....
Kill the budget and at the same time kick the pn gov out the door. Appoint incompetent finance minister you'll get SHIT of a budget.
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