Thursday, September 13, 2007

Cooked-up 2008 Budget Figures that reduces the Budget Deficit to 3.1%

"The budget figures have been revised umpteen times before they settle on a certain figures with the aid of the powerful computers in MOF. The fiddling of the final development spending figure of RM40 billion figure to give the desire "feel good" budget deficit 3.1% must have been done much earlier as the Treasury's Economic Report was prepared earlier than the final version of the Budget figures read out by PM Abdullah." - Present Power Point.

A Singapore business newspaper has unearthed a discrepancy in the allocation for development spending that derails the figures that determined budget deficit. Economists are asking: Is Abdullah's budget deficit actually shrinking or soaring?

"the discrepancy is between figures in the Treasury's Economic Report (2007/2008), read in tandem with the Budget, and Abdullah's actual budget speech.The Economic Report and Abdullah are consistent in that -- despite the record spending at RM176.9 billion -- they both maintained the federal budget deficit will continue to shrink from 3.3% of GDP in 2006 to 3.2% in 2007, and 3.1% in 2008. But the inputs used to arrive at the budget deficit estimated for 2008 were arithmetically conflicting and glaringly non-aligned." -Business Times Singapore.

To read more about the report, please visit Present Power Point.

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