Monday, July 21, 2008

Snippets - Reducing the burden

As posted by Dr. Mahathir Mohamad at on July 21, 2008 1:09 PM

Recently the Star reported "Budget to help reduce burden".

The burden is of course the high cost (40 per cent increase) of oil which has triggered off an inflationary process with increases in the cost of everything.

Since the withdrawal of Government subsidy for oil and the resultant "burden" on the people the Government has been announcing numerous measures to lighten the burden. Mostly they take the form of rebates, reduced taxes and cutbacks.

The idea to withdraw the subsidy is of course to save Government money. But giving money back in one form or another would reduce the savings. If it is really substantial then would it not be better if the Government simply reduce the price increase of oil from 40 per cent to 30 per cent?

Better still, since Petronas' contribution to Government revenue is so big, why not reduce the price of oil further maybe to a 10 per cent increase and then gradually increase it. This would give people time to make adjustments. And maybe the wages and salaries can be adjusted upwards stage by stage.

If the Government really wants to reduce the burden of the people caused by the price of oil, it should really look at the whole economy and seek ways and means to reduce the burden, not piecemeal but in a comprehensive way.

Sorry. I know I am not in the Government, not even in UMNO.