There is nothing wrong with civil servants earn higher average salaries than private-sector and receiving bonus. But can you imagine how big RM3.1 billion is and its effect on the National Debt?
Ironically, Malaysia GDP is expected to grow more than 3% annually but government debt continues to grow at 12% annually.
The government’s Performance Management and Delivery Unit’s calculations show that by the year 2019, the country’s projected debt will be 103% of GDP and the fiscal deficit will reach RM449 billion or 38% of GDP.
At that point in time, the country will go into sovereign debt crisis in which government revenue will not be enough to service its debt and to operate the hospitals, schools and other government services.
Undeniably, government paying a month's bonus to the 1.2 million civil servants can be seen as unwise. Thus, under no conceivable circumstances should the government ever concede in practice.
Prime Minister Najib Razak said the government could not pay a month's bonus to the 1.2 million civil servants in Budget 2011 because it incurred an expenditure of RM3.1 billion is thus justified.
He said, the special financial assistance of RM500 for each civil servant was appropriate.
Najib said many quarters had lobbied to him to announce a month's bonus to the civil servants. But I would like to share with you ... that a month's bonus incurs an expenditure of RM3.1 million for the government. Personally, I would want to give a bonus but as a responsible finance minister, I cannot expend more than the national revenue.
"It is for this reason that I gave RM500 as a special financial assistance to civil servants," he said.
Najib announced a special financial assistance of RM500 for all civil servants from Grade 54 and below as well as contract officers and retirees. The payment will be made in December this year. The aid could help civil servants cope with schooling expenses for their children at the end of the year.
He said that though no bonus was given, the government had proposed other incentives for civil servants, such as maternity leave of up to 90 days. These also benefited women teachers, who made up almost 70 percent of the 400,000 teachers in the country.
Ironically, Malaysia GDP is expected to grow more than 3% annually but government debt continues to grow at 12% annually.
The government’s Performance Management and Delivery Unit’s calculations show that by the year 2019, the country’s projected debt will be 103% of GDP and the fiscal deficit will reach RM449 billion or 38% of GDP.
At that point in time, the country will go into sovereign debt crisis in which government revenue will not be enough to service its debt and to operate the hospitals, schools and other government services.
Undeniably, government paying a month's bonus to the 1.2 million civil servants can be seen as unwise. Thus, under no conceivable circumstances should the government ever concede in practice.
Prime Minister Najib Razak said the government could not pay a month's bonus to the 1.2 million civil servants in Budget 2011 because it incurred an expenditure of RM3.1 billion is thus justified.
He said, the special financial assistance of RM500 for each civil servant was appropriate.
Najib said many quarters had lobbied to him to announce a month's bonus to the civil servants. But I would like to share with you ... that a month's bonus incurs an expenditure of RM3.1 million for the government. Personally, I would want to give a bonus but as a responsible finance minister, I cannot expend more than the national revenue.
"It is for this reason that I gave RM500 as a special financial assistance to civil servants," he said.
Najib announced a special financial assistance of RM500 for all civil servants from Grade 54 and below as well as contract officers and retirees. The payment will be made in December this year. The aid could help civil servants cope with schooling expenses for their children at the end of the year.
He said that though no bonus was given, the government had proposed other incentives for civil servants, such as maternity leave of up to 90 days. These also benefited women teachers, who made up almost 70 percent of the 400,000 teachers in the country.
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1 comments:
"There is nothing wrong with civil servants earn higher average salaries than private-sector and receiving bonus."
hahaha... you must be joking... so shit...
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