Subsidy system must be reviewed: Mahathir



KUALA LUMPUR, Dec eleven The funding system must be reviewed to safeguard the subsidies strech the people who unequivocally need them the most, says former prime minister Tun Dr Mahathir Mohamad.
He pronounced due to ineffectual distribution resource under the stream funding system, motor fuel funding in sold did not essentially strech the targeted group, though was also enjoyed by those who were not eligible.
"A person with the big fancy automobile can fill up his tanks with the lot of motor fuel as well as thus, gets the lot in motor fuel funding as compared to an additional person pushing the tiny automobile with the smaller fuel tank as well as hence, gets less subsidy.
"We know the infancy of those with big cars have been tall income earners as well as those with tiny cars have been low income earners, so the motor fuel funding does not strech those who unequivocally need it," he told reporters during Mutiara Damansara, here, today.
Earlier, he delivered the speech patrician Rural Transformation: Rural Administrator's Role during the Rural as well as Regional Development Ministry's District Development Coordination Meeting Series 2/2012.
Dr Mahathir pronounced the review must take in to account the implementation of an in effect as well as light funding rebate resource to safeguard the people could revoke their dependency on subsidies as well as become competitive citizens.
He pronounced the account accessible from the rebate in funding could be used for the growth of infrastructure for the people such as schools, hospitals as well as open housing.
"However, I consider in sequence to revoke subsidies, you need the strong government. During my time, you hold two-third infancy as well as it was easy for us to exercise as well as channel the money for other projects for ! the peop le.
"If the supervision is weak, it is feared that they will lose the people's votes if they revoke the subsidy, this is the problem too," he added. Bernama
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