GDP growth? What raw figures do not say

ARCHIVES 2011

By admin-s On Nov 19, 2011

How many of us felt richer by 5.8% during those 3 months? Now the governor revealed that “public consumption expanded by 21.7% from 6.6% in Q2”. What this mean is that official GDP increased impressively because of government spending during Q3 was almost 4 times more than Q2!

By Lee Wee Tak

Come election season, it is natural for us to expect more positive news to come out from official (a.k.a. controlled) channels.

According to the Bank Negara Governor, Malaysia’s GDP for Q3 2011 registered a 5.8 growth.

http://www.bernama.com/bernama/v5/newsindex.php?id=628087

The question is, how many of us felt richer by 5.8% during those 3 months? Now the governor revealed that “public consumption expanded by 21.7% from 6.6% in Q2”.

What this mean is that official GDP increased impressively because of government spending during Q3 was almost 4 times more than Q2! Interesting to note that the federal government is the biggest employer and anything they spend, with a deficit budget, will increase national debts (to be paid back by tax payers)

Some artiles about the national debt
“Angka yang mengerunkan…”

“Kerajaan Persekutuan hutang RM438 bilion atau 53% daripada KDNK!”

Now what did BN government spend in those past 3 months? Some of the answer is here

In August 2011, half month bonus of RM1.27 million to our bloated and underperforming civil servants and RM500 special payment to 590,000 government pensioners cost us an estimated expenditure of RM2bil. Also duit raya was paid to Felda settlers.

If the 5.8% was meant to make BN look good, it merely highlighted yet again the uncontrolled spending of BN administration. 5% is also the magic figure in 2012 budget where so many quarter questioned the over optimistic estimation (MIER included) hence going by Q3 2011 logic, Najib/we tax payers have to pay not so special bonus every quarter to reach his magic 5% for 2012 then.

“higher expenditure of emouluments, supplies and services…”? The some of the supplies and services that contribute some of this 5.8% will appear in next year’s Auditor General’s report. More binocular purchases?

Maybe there will be more Feedlotgate too; condo buying from food security fund (hey KJ, that public fund IS for food security, not investment purpose…by the way, who did Feedlot buy from and who will Feedlot sell to in the future and at what price?)

So GDP is mainly driven by unjustified bonuses and continuing uncontrollable spending. Since the federal government is the biggest employer and consumer, spending 21.7% higher and the national average is merely 5.3%, other sectors must have registered lower growth hence the national average have been pulled down then.

When you read the jabatan statistic report below, more tell tale signs will emerged.

http://www.statistics.gov.my/portal/index.php?option=com_content&view=article&id=1325&Itemid=89〈=en