MAS RM2.5 Billion Raising Of Capital Guaranteed By The Federal Government Proves The Success Of BN's Successful Cover-up Of 3Ds Of Deficit, Debt And Deceit.
Last month, Malaysia Airlines (MAS) voiced a Sukuk programme of up to RM2.5 billion to residence a operative collateral following record losses of RM2.52 billion in 2011. One little-noticed aspect is which this raising of collateral will be upon trial by a Federal government, augmenting a amount of fortuitous liabilities upon tip of already incurred debt by a Federal supervision of RM456 billion as during 2011.
MAS RM2.5 billion raising of collateral upon trial by a Federal Government proves a success of BN's successful cover-up of 3Ds Of Deficit, Debt as well as Deceit. BN knows which a vicious emanate in a entrance ubiquitous elections is a handling of a manage to buy as well as how a people's price of vital can be reduced as well as their mercantile livelihood increased. Tied to either BN can benefit a people's economically is a supervision of a Federal government's debt as well as bill deficit, which some has traced to a disaster to residence a menace of corruption.
With a RM250 million National Feedlot "cows as well as condos" liaison involving a family of a "Pakatan Rakyat" Wanita arch as well as a decline in a anti-corruption rankings of Transparency International from No. 37 in 2003 to No. 60 final year, BN has given up upon perplexing to persuade a open which it is serious about fighting corruption. However BN is some-more successful in mean action a open which a menace of crime has not adversely affecte! d a econ omy, especially a Federal government's debt as well as deficit.
BN's claims which a Federal Government Budget Deficit was RM 43 billion, RM 45.5 billion(estimate) as well as RM 43 billion(estimate) in 2010, 2011 as well as 2012 respectively. In % of GDP, it is 5.6%, 5.4% (estimate) as well as 4.7%(estimate) for 2010, 2011 as well as 2012. These bill necessity total have been approach as well low as a country's projection of mercantile expansion is as well high as well as a handling expenditures as well low.
The bill necessity as a % of GDP in 2012 will be higher than a voiced 4.7% to rise to some-more than 5.5% as a result of BN's determined efforts to buy votes with supervision money handouts, polite servants' compensate enlarge as well as big projects such as a hurl out of broadband to all schools. Unlike PR state governments which yield social benefit from bill surpluses completed for a each 4 years PR is in power, BN is giving money handouts from bill deficits which has been incurred for a final fifteen years.
As a result of bill surpluses, PR need not steal to outlay upon social programs for a people. However BN Federal supervision has to steal to spend, following a fifteen years of continuous deficits. This can be seen by Federal supervision debt augmenting by 71% from finish 2007 of RM266 billion to RM456 billion by finish 2011. Unfortunately this is not a full Federal supervision debt as fortuitous liabilities of loans taken by private companies or supervision agencies have been not included.
If fortuitous liabilities have been included, a supervision debt exposure will enlarge by RM97 billion in 2010.(Contingent liabilities for 2011 have been still not available). Malaysians contingency remember which there is a day of reckoning for debts borrowed to be repaid. Ultimately, a typical people have been a ones to compensate for all these debts particularly when Malaysia goes bankrupt.
In 2010, a "off-balance sheet" financing activ! ities ha s hit a record high of RM96.9 billion in 2010, a 14.9% enlarge from RM84.3 billion in 2009. These have been loans which have been taken with a Government guarantee i.e., a Government is obligated to compensate should a borrowers fail to solve a debts. As an example, if a Federal Territories Foundation is unable to pay off a due RM300 million loan from EPF to yield financing for a low-cost housing purchasers, afterwards a Government will have to step in to make a RM300 million payment to EPF.
Federal Government loan guarantees have been expected to enlarge dramatically with loan guarantees for a West Coast Highway of RM 2.24 billion, during slightest RM20 billion to account a first proviso of a RM53 billion Klang Valley MRT mega-project, a building a whole of 74 police headquarters with government-guaranteed RM10 billion debt by MoF-owned Pembinaan BLT Sdn Bhd, or a due RM20 billion sukuk devise by Pengurusan Aset Air Bhd (PAAB) to restructure a country's water assets. These loan guarantees have been debt exposures to a Federal supervision which contingency be enclosed in a total debt figures.
In contrast, a state supervision debts of PR state of forsaken dramatically only as a BN Federal supervision debt as soared. In Penang, state supervision debt was cut by 95% from RM630 million in 8.3.2008 to RM30 million by finish of 2011. BN's deceit in a poorer monetary opening as compared to PR state governments can be seen by Datuk Seri Najib Tun Razak recent claims which PR have been populist who can not deliver. For this reason, PR has to do a improved job to expose BN's 3Ds of Debt, Deficit as well as Deceit or else lose badly in a next ubiquitous elections.
Lim Guan Eng is a DAP cabinet member ubiquitous as well as Penang Chief Minister
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Courtesy of Bonology.com Politically Incorrect Buzz & Buzz
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