Raising income with BSH online is wrong, says Dr M…
BSH – As the hikes of the fuel has become a reason for the troubles of the common people, the government has decided to help them with petrol certificates and vouchers instead of providing them with any kind of aid in cash like BSH in the year 2020. But this was only restricted to the lower and middle income classes.
According to the Tan Sri Ramon Navaratnam, a well known economist, this kind of step will definitely improve the economic condition of the country. Although the petrol price in the last few days was very much on the higher part, yet he feels that a certain part of the population who are having their BSH paid just last few months ago, did not have anything to bother about. Beside the reduction in the subsidy amount of fuel, the price of diesel and RON95 was increased.
Diesel price was RM2.20/ liter where as RON95 priced at RM2.30 / litter and these were the stats of 1st OCT. Ramon, though satisfied with the Government’s policy of reducing the subsidy slowly, did not support the fact that the reduction of subsidy hit the lower middle class people more than the other people. He also said that people have misused the benefit of the BSH online, as most of them have used them for food or a picnic, rather than utilizing it to good effect. Ramon has suggested that there must be certain kinds of subsidy that will be improving the economical value of the country, but also meet the goal of the Government of cutting down the subsidies as much they want.
He explained how the petrol certificates and vouchers worked well, that offered the petrol at a special price for a group of people. But still he thinks that the government must review the programs before implementing more of these. 2020 Budget According to Ramon, there should not be anything that will surprise everybody in the 2020 budget.
The GST has already been fixed and people can see a little amount of IT reduction as well. Ramon said that, the budget would not bring in anything that would raise the taxes, other than perhaps GST only. And he also added that the government needs to work on how they can reduce the budget deficit as well. He expected the government to phase out the subsidies in the national budget for year 2020. She hopes the budget is not only merely focusing on the online BSH. As he added information about the GDP calculated by the Bank Negara Malaysia, he mentioned that the lower income people would not be helped with the GDP going north of 5.5%. He expected the government to take certain steps so that the balance between economic growth and the stability in market price stays in balance. According to the economist, it is important that, at the time of the kemaskini BSH application, the government must keep an eye on those who are in need.
Otherwise, there can be problems regarding the dis-balance in economical conditions of the country and they won’t be able to handle the kind of chaos it can create. So it will be better to make sure the budget they propose is well balanced, have an edge towards those who are in real need and in the mean time making sure the country’s economical condition also rises. This solved the problem where many citizen didn’t get their borang BSH on time.