IT is indeed refreshing to note the Government is mulling delaying mega projects to provide subsidies to the people who are facing escalating cost of living.
For once there is an admission, by a minister, that real inflation ought to be about 11.4% if subsidies are removed. That, in reality is the conundrum – remove subsidies and conscript the people to suffer the impact of increasing inflation or continue subsidies as a means of mitigating the people’s suffering.
In the former equation, the people would be facing unsurmountable inflationary trends and naturally agitate for financial relief including a demand for higher wages.
The alternative is continuing the subsidies, being a mechanism to lighten the impact of rising cost of living on the people.
In my view, besides suspending mega projects, the Government needs to recalibrate its expenditure budget. As it is, billions have been allocated to ministries that does not help address the economic pressures faced by the people.
Therefore, it would be timely to cut back on such allocations and divert financial resources to provide assistance to the citizens.
While it cannot be disputed that subsidies, estimated to be about RM80 bil this year, cannot be in place perpetually, the Government needs to take stock of pressing issues related to food security.
Do the right thing
Sadly though, we are seeing farmers being driven out of the land on which they have toiled to produce food for the people just so that developers can rake in profits. We also have our seas re-claimed ostensibly and destroy the rich breeding grounds of marine life which, inevitably, results in depleting source of seafood and a spike in the prices of “ikan kembong” and others.
So, our economic planners need to formulate policies with emphasis on generating” revenue”, otherwise called taxes, to balance the Government’s balance sheet.
And it has been propounded that the Government must the ultra-rich individuals and companies by way of wealth tax and capital gains tax.
Caught between a rock and a hard place, the Government has no choice but to prioritise the plight of the citizens and do the right thing for the country. – June 30, 2022.
K Veeriah is a veteran unionist and a contributor to FocusM.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
