misleading subsidy information?

June 29th, 2011 by poobalan | View blog reactions Leave a reply »
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I tried searching the statistics for 2010, but so far the 74 billion refers to subsidies in 2009. Not sure if coincidentally the amount is same for 2010.

For 2009, the slides from Pemandu shows that:


[click to enlarge]

42.4 billion was for social subsidy (health and education?) which is 57%.  And this is mentioned in media as well, with slightly different figures:

According to Pemandu figures, the country’s total subsidy bill was RM74 billion, or equivalent to RM12,900 per household.

Pemandu said the government subsidises RM23.5 billion for fuel, RM4.6 billion for infrastructure, RM3.1 billion for food and RM41.8 billion for social welfare (health, education and higher education).

But the finance ministry said yesterday the country’s total subsidy was RM18.6 billion or equivalent to RM3,246 per household.

It said that RM7.1 billion was spent for fuel, RM800 million for infrastructure, RM2.9 billion for food and RM7.8 billion for social welfare.



However, if the announcement below is correct, then it won’t look good on Pemandu. Hope to hear their clarification soon.


The federal government had “misled” the public when the Performance, Management and Delivery Unit (Pemandu) stated it had footed a subsidy bill of RM74 billion in 2010, an economist said today.

NONESpeaking at the Selangor 2012 budget talks in Subang Jaya today, Nottingham University visiting associate professor Subramaniam Pillay said 54 percent of that bill was for education and healthcare, which is in fact government responsibility.

“All governments in the world subsidise different items for different people. But education and health are what economists call ‘public goods’ and are the responsibility of the government,” said Subramaniam who retired as Nottingham University Business School head last year.

“All developed countries around the world subsidise healthcare heavily, except the US, but (President Barack) Obama recently tabled a Healthcare Bill.”

Take the two big-ticket items away and the bill was only RM31.1 billion, of which only food subsidies (RM3 billion or about 2 percent of the federal budget) went directly to the rakyat.

He said much of the RM23.7 billion fuel and energy subsidies paid in 2010 had gone to gas subsidies to independent power producers.

“For infrastructure, all the subsidies go to (highway concessionaires) not because they need it but because they signed an agreement (with the government), which was stupid. It’s not a subsidy for therakyat,” he said.

The Pemandu figure of RM74 billion has been cited by the government to justify its subsidy cuts on petrol, natural gas, diesel and food items.



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