RM10bil surplus without adjusting subsidy

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http://www.buletinonline.net/images/stories/berita29/AHMAD%20HUSNI1%20.jpgIPOH – The government will still have a surplus of RM10 billion even without implementing the subsidy adjustment, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said.

He said the subsidy rationalisation programme announced this week was to make the country’s economy more efficient.

“Taxes collected by the Customs Department and the Inland Revenue Board will be RM158 billion this year compared to RM148 billion projected when the 2010 Budget was tabled last year,” he told reporters after handing over RM450,000 for the construction of the Taman Chepor Damai surau here.

He was responding to claims by the opposition that the government had to reduce subsidy because the government’s income was diminishing due to wastage.

Ahmad Husni said to achieve the objective of making Malaysia a high-income nation, the government had to transform the economy, making it a better-managed economy by 2020.

Meanwhile, in BACHOK, Deputy Finance Minister Datuk Dr Awang Adek Hussin said the subsidy reduction for sugar would minimise smuggling activities because it would make it prohibitively costly for smugglers to do so.

“This means that sugar can be obtained easily in the local market,” he told reporters after meeting members of the Bachok Giat Mara centre.

He said that before the subsidy adjustment, there was a huge difference in the price of sugar, which was RM1.65 per kg in the local market compared to RM2.50 per kg in the neighbouring country.

Following the adjustment, sugar is now priced at RM1.90 per kg in Malaysia. — Bernama