With the unveiling of Budget 2015, it is apparent that the savings from the fuel subsidy pullback has been channelled to an expanded BR1M. As that cash handout is fiscally an expenditure, it does less towards creating a sustainably balanced Government budget than if the subsidy was allowed to remain. What it does create is a deeper addiction to direct state assistance making rehabilitation and weaning much harder. And this handout does not lift the lower class to a new level as its just a life jacket keeping heads above water in a sea of rising cost of living. It also incentivises the middle class to regress as there is no assistance extended to that segment leading to a wider income gap. The Government should focus on solutions that would truly help the economy rather than settling for schemes that generate popularity. Sugar gives an immediate rush but everyone knows its bad for you in the long run.
Posted on: Sat, 11 Oct 2014 04:20:50 +0000
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