Budgetary Concerns

Has anyone noticed that every year when the budget is announced, the pro-BN mainstream newspapers will always have nothing but good things to say about the budget. Can't fault them for doing their job which requires them to say nice things about their political masters. 

This year's budget is as the years before, full of surprises, goodies and controversies. At first glance, we seem to be going back to the mega-project days of the 90s. Don't get me wrong, mega projects are good, they are necessary to upgrade the nation's infrastructure but the choice of projects must be made with that in mind - to improve infrastructure and not to improve someone's bank balance. 

My list for the good and the bad of Budget 2010 are;

'Good' and 'Good-ish'

MRT - long overdue. As a former user of public transport, I understand what commuters have to go through everyday. Let's hope the MRT will be a user friendly and integrated system. no more walking half a mile under the hot sun and buying another ticket to get a connecting train. Will the selection of the contractor be done in a proper, transparent way or do we resign to the fact that Gamuda-MMC will be getting the project? 

Freeze on PLUS highway toll increase for the next 5 years - the highways have not been identified but it is good news nonetheless. However, will the government be forced to compensate the highway operators for "loss of income/breach of contract"? If so, we have conned!

Shaded Walkways in the KLCC area (RM50m) - Finally! Like the MRT, this is also long overdue. While they are at it, why don't they fix the roads around KLCC too, they are probably the worst in the city, which explains why my rear absorber needs changing 5 months after replacing it. 

Abolishment of import duties - the import duties on approximately 300 items will be abolished. the items include lingerie, handbags, shoes, mobile phones, golf balls and perfumes. I welcome the move but I doubt it will benefit the masses because most of the listed goods are 'luxury goods' which are bought by those in the higher income bracket. Nevertheless, if it means 30-40% percent off my next bottle of perfume or iPhone4, I'm not going to complain. 

'Bad'

Warisan Merdeka Tower (RM5b) - WMT? More like WTF?! Do we need another skyscraper? Sounds like an ego boosting, bank balance fattening project to me. 

KLIFD (RM26b) - KL International Financial District, a Canary Wharf like project for KL. Will building a financial district turn KL into a global financial center? The policy makers seem to think that a few nice buildings surrounded by toll highways to the airport will transform KL into the NY of the east. Didn't it cross their mind that to be the preferred international financial center requires the full complement of business friendly policies and regulations; pool of able human resources; political maturity and stability; zero tolerance for corruption, cronyism and nepotism; safety and security; just and equitable judiciary and good public service and infrastructure. 

1pct rise in service tax - We are charged 5% service tax at restaurants and hotels and for parking as well as fast food. A 1% increase on a small bill is quite insignificant but on total expenditure it can be substantial. Will there be a reduction in income tax rates? Or maybe the 1% is required to pay compensation to PLUS? 

We will also have to pay a 6% tax for Astro services. 

I also noticed that the government operational budget has increased by RM10b. How come?