What Do The State Budgets of Penang and Selangor Tell Us?


With power going to different parties and coalitions after March 8, 2008, policy competition became a thing to watch. This was one of the major gains for Malaysia as a  democracy. Now, three-and-ahalf years down the road, enough time has passed for us to do some comparisons. What better way than to compare budgets?

WE ARE LIVING in times beset by talk of financial difficulties all over the world.

The Eurozone crisis continues to unfold with the economies of Spain, Greece and soon Italy spiralling steadily downward, while the US’s massive budget deficit threatens to have far-reaching implications for other economies. How efficiently public finances are managed will determine how stable governments can stay in each of these nations. It is a tough battle to fight, balancing harsh austerity measures yet retaining enough popularity to stay in power.

Malaysia is no different, and Minister in the Prime Minister’s Department Idris Jala had warned in 2010 that we were heading for bankruptcy if subsidies were not removed eventually.

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