Dr M: Extreme civil service wage hike could bankrupt nation

Dr Mahathir pronounced a tall wage bill might force Putrajaya to diminish growth spending. File pic

KUALA LUMPUR, Mar twenty-one Tun Dr Mahathir Mohamad has warned opposite augmenting polite servants compensate too much, as this might send a republic towards eventual bankruptcy.

The former prime apportion pronounced which any extreme jump in open zone compensate would meant there will be deficient funds for a nations basic developmental needs, which could possibly force Putrajaya to steal more.

If you enlarge salaries too much, as well as you have more than a million supervision employees, there is a likelihood which you will not have enough for even minimal development.

We might announce a large growth budget but there will simply be not enough income to implement them. We might borrow. But there is a extent to borrowing, he pronounced upon his Chedet blog yesterday.

This was since a supervision would eventually be unable to use a loans if it borrows too much, he cautioned.

Earlier this month, Prime Minister Datuk Seri Najib Razak announced which a supervision would throw a brand brand new Public Service Remuneration Scheme (SBPA).

The polite menial compensate scheme had been criticised for benefiting top supervision servants whilst leaving a majority of a polite use with paltry salary hikes.

Instead, a existing Malaysian Remuneration System (SSM) will be kept in place with brand brand new improvements.

Dr Mahathir, who successfully directed a republic through a Asian monetary predicament of 1997, additionally hit out during a federal oppositions populist demands, observant these would dull out a governments coffers.

Pakatan Rakyats (PR) calls for compensate hikes, higher non-taxable pensions, extermination of tolls as well as one after another subsidies, if realised, he said, would force a supervision to spend more than it earns.

He p ointed out which open-handedness had caused Greeces ongoing sovereign debt crisis, as well as warned opposite following such irresponsible practices.

The opposition, wishing to turn renouned as well as win elections, will regularly await these demands. Not having to be responsible for a overspending as well as a probable failure of a nation, it is easy for them to support.

I hope a people will see through their lack of a sense of shortcoming to a nation, he said.

Dr Mahathir combined which a supervision of a day should not try to be renouned as well as urged a open to understand if not all of their wants could be met.

When a demand is made, a supervision has to examine a implication not only... in terms of a capacity to encounter a demand, it contingency additionally cruise a outcome upon a total nation.

If a supervision cannot authorize a demand, it contingency be since it does not wish to broke a nation, he said.


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