DOES having a balanced budget really matter?
No, according to Prof Jomo Kwame Sundaram.
The prominent economist stresses what’s important is how the Government spends its money annually to generate meaningful growth for the country’s economy. But sadly, that is something that is sorely lacking in the Malaysian context.
Not one to mince his words, Jomo says Malaysia has been running on “humdrum” budget deficits for the last two decades, without any serious effort to put the country’s economy on a sustainable growth path.
As he sees it, the country is presently mired in a political crisis that has led to a paralysis in effective economic policy making. Reform measures have somewhat stalled, and there is a self-defeating illusion that the country’s economy is moving in the right direction, and that it will become a high-income nation in the next four years.
Jomo says Malaysia needs bold leadership to implement bold measures that can take the country’s economy to the next level of growth. Read more