VINDICATION is what the 2016 Budget is. Robust and clearly not requiring adjustments to accommodate the slump in oil prices, it proves the wisdom of introducing the Goods and Services Tax (GST), which came into effect in April. That its timeliness is almost prophetic ” as if the government anticipated the depressed oil and commodity markets ” proves its effectiveness because without it, the halving of the oil revenue would necessarily have forced a deficit budget on the government or one stricken with austerity measures. Instead, despite the challenges ahead, trimming the deficit remains a priority at no expense to the countrys well-being, which bodes well for the 11th Malaysia Plan (11MP), this being its first budget. That the so-called œtax-and-spend blueprint had no surprises either way spoke of the continuity characterising the journey towards Vision 2020 and a high-income economy.
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