Scandal-stricken premier faces tough choices between pleasing voters and keeping fiscal balance Malasia is beleaguered. Primeminister and finance minister is being pulled in opposite directions by conflicting imperatives. One is, political. Voters dismayed by, a slowing economy and allegations of personal coruption and other irregularities at state fund 1 MDB.
- vigorously denied by Mr.Najib and the fund-are piling on the pressure for an increase in public spending.
The economic imperative however demands,,, Spending cuts as depressed, energy prices and slowing growth threaten to reverse the benefits of fiscal reforms enacted. Over the past several years.
True a goods, and services tax introduced in April IIS bringing in additional revenues.But these pale next to a drop of more than 40 per cent in revenues from petroleum royalties and taxes in the first half. Of 2015 from a year earlier. Such revenuse will probably fall further in the second half - a serious blow given that, they. Contributed about a third of all government revenuse in 2014.
Petrounas the national oil company,,Scandal-stricken premier faces tough choices between pleasing voters and keeping fiscal balance Malasia is beleaguered. Primeminister and finance minister is being pulled in opposite directions by conflicting imperatives. One is, political. Voters dismayed by, a slowing economy and allegations of personal coruption and other irregularities at state fund 1 MDB.
- vigorously denied by Mr.Najib and the fund-are piling on the pressure for an increase in public spending.
The economic imperative however demands,,, Spending cuts as depressed, energy prices and slowing growth threaten to reverse the benefits of fiscal reforms enacted. Over the past several years.
True a goods, and services tax introduced in April IIS bringing in additional revenues.But these pale next to a drop of more than 40 per cent in revenues from petroleum royalties and taxes in the first half. Of 2015 from a year earlier. Such revenuse will probably fall further in the second half - a serious blow given that, they. Contributed about a third of all government revenuse in 2014.
Petrounas the national oil company,,Is digging into its reserver and reining in capital spending in an attempt to pay the goverment a dividend of RM26bn this. Year RM3bn less, than in 2014. Despite the cut the payout, ratio - dividend paid relative to net profit-is roketing to an. Unsustainable level.
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