GST loss, not 1MDB debts, cause of wider fiscal deficit, says Najib

Nabihah Hamid Nabihah Hamid Updated 7 years ago · Published on 2 Nov 2018 8:07PM · 16 Comments

Ex-prime minister Najib Razak slams the finance minister over his statement today blaming 1Malaysia Development Bhd’s (1MDB) massive loans for the wider fiscal deficit of 3.7% of the GDP. – The Malaysian Insight file pic, November 2, 2018.

FORMER prime minister Najib Razak slammed Finance Minister Lim Guan Eng over his statement today blaming 1Malaysia Development Bhd’s (1MDB) massive loans for the wider fiscal deficit of 3.7% of the gross domestic product (GDP).

Najib, who is the former finance minister, said the government’s loss of revenue of more than RM40 billion was due to it scrapping the goods and services tax (GST).

“It’s obvious they want to blame the Barisan Nasional government and the 1MDB issue. They have not mentioned anything about 1MDB’s assets. 1MDB has many assets, if we monetise the assets we can decide on the best value.

“1MDB’s debts can be paid off,” Najib told reporters shortly after Budget 2019 was announced in Parliament earlier.

He said PH’s replacement of the GST with the sales and services tax (SST) in September after a three-month tax holiday had left a revenue shortfall which the government is now scrambling to recover.

“SST this year, they only get RM5 billion,” said Najib.

“There is a shortfall, and this is really what is haunting the finance minister, which is really the root issue.

“If they had kept the GST, everything could continue, including MRT3, the high-speed rail (HSR), ECRL and aid like BR1M.”

In his Budget 2019 speech, Lim had said one of the reasons for the country’s widening deficit was  the previous government failure to set aside allocations to repay 1MDB’s debts amounting to RM1 billion.

“The previous government did not prepare allocations to service 1MDB’s RM1 billion debt, take over the RM1.3 billion EDL project in Johor, RM1 billion for Prasarana and the Transport Ministry’s RM1.4 billion rail project, as well as RM3.9 billion for GST refunds,” he said. – November 2, 2018.


 

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Comments

  • Can you just shut up!

    Posted 7 years ago by Adrian Tan · Reply

  • Part of the 1MDB debt is from buying the pink diamond for your fat witch wife! Idiot!!!

    Posted 7 years ago by CY W · Reply

  • You bodoh ke Bugis Looter? Duit dah kau dan Fat wife lesapkan. Hilang sekali. Nak jual assets tampung kecurian. Hilang dua Kali. Kepala otak kau nak ajar orang jaga duit

    Posted 7 years ago by Arshad Lazim · Reply

  • Although just only a layman observer, I agree with Najib that GST (a tax system favoured by over 161 countries in the world) could have been retained, with profit, by reducing its 6% to 3%..

    Posted 7 years ago by MELVILLE JAYATHISSA · Reply

  • Monetise what? Your underwear? The so-called billions in units do not even exist. The remaining power plant assets are not even enough to cover the debts of 1MDB.

    Posted 7 years ago by Gerard Lourdesamy · Reply

    • He's very proud of the Tun Razak Exchange properties.

      Previously, sycophants wanting to please him would have happily moved into those towers on their opening. Now, with the new government moving to rein in property prices, REITs could crash. Corporate tenants want a piece of that? Puh-lease. TRX will barely be worth what was allocated for building it.

      Posted 7 years ago by Barani Krishnan · Reply

  • Eff off.

    Posted 7 years ago by Watchdog Watchdog · Reply

  • Talk is cheap. If Najib was really on top of the economy, would BN lose GE14?

    Posted 7 years ago by Roger 5201 · Reply

  • Najib. You are just showing your existence but the intellect engagement in disputing the 2019 budget of PH is just only you making noise and blowing lots of hot air. You have two choice ------ Either you stay quiet to prevent your showy stupidity or just keep on making lots of irrelevant noises which could incriminate you on your defense in court. Anyway nobody cares about what is going to happen to you in the end. The Rakyat have made their conclusion and would like to have grand finale to see you dangling at the end of the rope for your heinous crime .

    Posted 7 years ago by Lee Lee · Reply

  • you are damn right we're blame it on 1mdb!

    Posted 7 years ago by Wen Chiuan Woo · Reply

  • you are damn right we're blame it on 1mdb!

    Posted 7 years ago by Wen Chiuan Woo · Reply

  • LGE forgot to allocate more fund to expand bamboo river resort to accommodate more residents to check in from scUMNO.

    Posted 7 years ago by Chee yee ng · Reply

  • You are too smelly Najib & honcho....can't stand the stench

    Posted 7 years ago by Hantoo Blacklord · Reply

  • Stop talking , ()azzhole . you are no longer relevent to be around and alive. You should thanks there is the rule of law saving you and your family, we would just like to chop you up.

    Posted 7 years ago by TC BOY · Reply

  • They are not blaming the BN govt...they are just blaming you...idiot!

    Posted 7 years ago by . . · Reply

  • smart move
    divert attention
    no use

    Posted 7 years ago by Lan Lan · Reply