The national debt level is governed by various acts of parliament that impose a debt ceiling for the government. In accordance with Act 637 Loan (Local) Act 1959 (revised 2004) and Act 275 Government Investment Act 1983, the combined loans raised locally should not exceed a ceiling of 55% of the nation’s GDP. Act 403 External Loans Act 1963 (revised 1989) limits the external loans exposure to RM35 billion at any particular time. On top of the debt ceiling imposed by the acts, the national treasury also follows strict guidelines to strengthen the fiscal discipline, even before my tenure as the Finance Minister. For example, the proposed operational budget for a particular year should never exceed the revenue projection. Likewise, loans raised by the government should strictly be used for developmental budget - Anwar Ibrahim Former Finance Minister, Former Deputy Prime Minister and Current Hantu Raya Perut Buncit Doppelgangger kantoi konkek sama amoi @ Ketua Pengangkang source here
When bro hishamh wrote that he was not aware of the limits in relation to GDP.......monkey knew he needs to dig deeper......monkey also never heard of it being explicitly defined in our Laws...
So here goes...
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| Source here |
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| Source here |
Gua pun cari la Order Published in the Gazzettes...
Source here takde hasil....
Dei Ghani Patail....kasi upgrade your database la brader....ni bukan zaman tuk kaduk gua nak kena pergi cari kat Percetakan Nasional Berhad....apekelancau...
Gua pun pergi la hunting....jumpa this site
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| Source here |
Mahal nak mampos!!
It's public information dude......in pdf summore....If I'm 7 Days late i'm not able to search your historical DB??
Apekelancau.......
Gua dah stress ni.....
So had to go offline mode.....
Finally got the blardy thing......
5 hours of searching......finally found P.U (A) 241/2009 dan Adik beradik dia....
Gua capek sih......
Take a look at the previous limits (refer the revocation statement in each to track the movements)
Blardy thing went from an absolute number on a separately calculated basis to a limit of 40%(exl Shariah) in 2003, 45% in 2008 to 55% in 2009
There you go folks......
We do have a Debt Ceiling based on GDP....
A Ceiling that has been going up over the years.....
A Ceiling that has been going up over the years.....
The bigger question we should ask is whether such ceiling actually enforces fiscal discipline on our Government?
Enter Fiscal Responsibility Laws......
Read the whole paper here to have a better understanding on FRL go here
Capek deh.....
Allow me to refer you what bro hishamh said in his post..
A last point: whether we breach the debt limit or not is really moot – it’s not at a dangerous level, 90% plus is denominated in Ringgit, most of the debt is held domestically, and there’s plenty of domestic liquidity to absorb a much greater increase. I think in terms of priorities, there are much more important things to talk about and fight over.
Compare this to Ketua Pengangkang
Thus, the public debate on the alarming national debt level has become a legal issue of national significance as Dato’ Seri Najib’s administration is in serious danger of breaching the national debt ceiling and is complicit to conceal the fact from the public.
Kecoh giler brader....
And why now ??
And why now ??
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| Chart Pinjam from bro Hishamh source here |
An old long lost buddy of mine in the market posed these questions to me earlier today....
- Operationally the Debts always approaches the ceiling which is why it is revised periodically
- What is the Proper size of Debt in relation to our GDP or Other matrix?
- How does this compare to our current rating Vs our Peers in the same development phase as we are?
- What is the Maturity Profile of our Debts, is the Maturing debts sustainable relative to our refinancing capabilities, liquidity and ability to pay?
- Is the debt load serviceable in terms of National or Government Income?
I totally agree with him on the above......and all these limits that we are trying to set ....is it because we want to target a particular sovereign rating?
masuk akal ke?
Do check out how ratings have fared ......
Can someone tell me what happened to Portugal, Ireland, Italy and Spain?
So Anwar.....what Legal issue of National Significance?
Gua budget finding that Hantu Raya Perut Buncit is a much more serious Legal Issue of National Significance
masuk akal ke?
Do check out how ratings have fared ......
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| Source CIMB Presentation to a regional event |
So Anwar.....what Legal issue of National Significance?
Gua budget finding that Hantu Raya Perut Buncit is a much more serious Legal Issue of National Significance