Saturday, August 30, 2008

Budget 2009: Will The Measures Ease The Burden

I think what is important is, whether the measures taken within Budget 2009 will address inflation, rising cost of living and prices of consumer goods.

A significant number of stimulus was announce to encourage consumer spending, while the individual income taxes reduction will certainly ensure more liquidity and circulation of money in the economy, it will be however will not address the public sentiments over the overall management of the economy.

We need to move the retailing business, as this will help in spinning the economy by encouraging spending, the question will be, will people really want to spend or just keep their money in the pocket.

There is some flaws in the management of economy, indeed I am very interested in knowing how those measures will be implemented.

It would be very interesting again to see how the government will juggle in controlling inflation, yet wanted to encourage spending to spin the economy.

The reduction in petrol pump price by 6% has yet to show any improvement on the economy, consumer prices has since soars ever since the last steep increase of pump prices of 40%.

I would bet that even if the prices of petrol pump prices go down to RM 1.95 again, prices of consumer goods will not be reduce to the previous figure.

I still believe in economic sense the it was a mistake to increase petrol pump prices by 40% the last time around.

We need a concrete measures to correct the situation. I can't see it yet in the 2009's budget.

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