Budget 2016 is about the government's budget, not about the economy although it has implications for the rest of the economy.
To be fair, the strategic thrusts for the economy where already spelt out the 11MP announced earlier.
In straightening out the books of the government, the government did the following:
1. Increasing personal income tax for those earming RM600,000 a year or more by 1 and 2 percentage points. Move in the right direction.
2. There should be an increase in the corporate income tax as well, especially for big multinationals. They must contribute more to the economy.
3. I am dismayed that the government gloated at the massive amount of money they have raised and will raise from the GST. This is taxing everybody for the benefit of government revenue to pay civil servants who do a bad job in running the country and economy.
4. I am concerned that the extra GST money may have come from the reluctance of the government to refund businesses. If the government can go around to every shop and demanding GST payments and fines, the government is not thinking of fairness in implementing the GST but in collection extra revenue, by hook or by crook.
5. The minimum pay for civil servants at RM1,200 per month is a good move, being socially just though the economics is another matter althogether.
6. The move to ramp up the average speed of the internet to 20mps is a good move.
Having said that, a good budget is one that inspires investors. This budget does not do that.