Budget has been table out. I should say it is generic or it is the first cut. It has to be reviewed within the next fiscal year. There is no shame in doing that. Anyhow, when needed and it happened before, the government did table out mini budget.
Mini budget should be table out within 2010 if really the measure of cutting the operational expenditure is successful. The saving from the operational cost should be channel into capital expenditure. Or else, I would say that the government is not really serious in cutting down it operational expenses. Because there is simply no results.
The Idea is
The obvious is that the government needs to rigorously cut the operating expenditure but increases the capital expenditure.
Why? The economy was bad and still bad. What does good does it bring? It brings with it corrections. So those business and businessman who do not deserved to be exist should stop doing their business and start looking for employment. They have to face the brutal reality. They can hardly sustain their business, they have no prospect and more their present makes the sector that they are in losing its profitability.
But if even these businesses ceases to exist and the businessman looks for employment, it is very hard as the economic does not allow businesses to hire new people.
So we are stuck!!!
Worthy businesses and businessman can hire more people eventually if there are more business and more spill over effects from generation of more businesses
The is why capex has to be increased. It should be focus on area of hugh potential and area where there are most employment and activities. But measures are to be taken not to give businesses from capex to companies which are not really a company. Company who does not employ people or worst, does not have employee at all.
Now that is the obvious!
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