Latest news with #FiscalResponsibilityAct
NZ Herald
02-07-2025
- Politics
- NZ Herald
Fiji's path to equality offers lessons for New Zealand's race debate
Fiji has since taken steps New Zealand should study. Its 2013 Constitution abolished the race-based electoral system. All citizens, regardless of ancestry, are now called 'Fijians'. In 2022, there was a peaceful transfer of power. Fiji now has a multi-racial Government, something once thought impossible. Fiji still faces challenges. There's a meth epidemic. But the political consensus is clear: the way to govern a multi-ethnic country is for all citizens to be equal before the law. Meanwhile, in New Zealand, a Parliamentary select committee is considering the Regulatory Standards Bill. The reaction has been hysterical. Both supporters and critics exaggerate its effects. The bill is modest. It simply promotes better law-making by requiring transparency and clarity. Its principles are recommendations that are not binding. The courts can't enforce them. A future government can ignore it, just as governments ignore the Fiscal Responsibility Act's requirement for balanced budgets. So why the fury? The critics are not just wrong, they are revealing. Tobacco companies can't sue under the bill. The claim by the Waitangi Tribunal that Māori weren't consulted is refuted by the number of Māori who have made submissions. The claim that it erases the Treaty of Waitangi is absurd. If a Regulatory Standards Act had been in place, many breaches of Māori Treaty rights might not have occurred. A lawyer at Tāmaki Legal articulated the real reason the critics oppose the bill: one of its principles is that 'all citizens are equal'. That, apparently, is the problem. There's nothing in the bill that prevents governments from promoting equality, or Māori language and culture. One of New Zealand's endearing features is that anyone can claim to be Māori. I have sat on select committees where witnesses, blue-eyed, fair-skinned with no te reo, have not only claimed to be Māori but to speak for Māori. No MP questioned their claim. I recall one eccentric MP declared that she felt Māori. Despite having no Māori ancestry, she was admitted to her party's Māori caucus. The Treaty of Waitangi, Article Three, grants Māori the rights of British subjects. In 1840, that meant equality before the law, the same as every other citizen, regardless of birth. If we are equal who cares what race we claim to be? Once we claim our ancestry entitles us to extra rights then who we are becomes important. Recently, in Parliament, Winston Peters was heckled by Te Pāti Māori MP, Tukau Ferris. Peters fired back asking, 'What is the majority of your DNA?'. Te Pāti Māori MPs were claiming that being Māori meant they did not have to observe Parliament's protocols. If the tribunal is correct that Māori have extra rights, it raises Peters' obvious question: Who is a Māori? That question is politically toxic. It is considered the height of rudeness in New Zealand to ask someone to justify their claim to be Māori. But if it comes with superior rights, it's a necessary question. With apologies to David Seymour but it is his bill, is he Māori? He is 1/64th Māori. He is entitled to be on the Māori roll. Are those who are 1/64th Māori one of the Māori the tribunal says should have been consulted. If so, why? If not, why not? It is a question that the tribunal has yet to answer. We will regret the passing of the unspoken rule: say you're Māori, and you are, no proof required. Fiji confronted the question head-on. Only those classified as indigenous Fijians were eligible to vote for the Fijian communal seats. If that standard applied in New Zealand, there would be no Māori electorates and few Māori for the tribunal to consult. This is where we're heading, down a road where the state defines and divides us by race, then treats us unequally. Fiji has already been down that road. It didn't end well. Fiji has also shown us the way back. Fiji's new constitution says every citizen is Fijian. Full stop. No exceptions, no privileges. I used to think the Regulatory Standards Bill was a helpful but modest reform. After reading the critics, I've changed my mind. It's not just helpful. The bill is essential.
New Indian Express
01-07-2025
- Politics
- New Indian Express
For first time, KRS dam full in June, Karnataka CM offers bagina
MYSURU: In a moment soaked in history, Chief Minister Siddaramaiah offered bagina to the Cauvery at the Krishnaraja Sagara (KRS) Dam at 1.35 pm on Monday. This is the first time ever that the KRS dam, one of the state's lifelines, has reached its Full Reservoir Level (FRL) of 124.80 ft in June itself, since it became operational in 1932. The district administration and Cauvery Neeravari Nigam Ltd officials had put up stunning floral replicas of Nalwadi Krishnaraja Wadiyar and Sir M Visvesvaraya at the entrance of the dam, paying homage to the visionaries behind the reservoir. Women dressed in traditional attire participated in the Poorna Kumbha ritual, even as the red and yellow Karnataka flag fluttered along the dam and at Brindavan Gardens. The CM, along with his cabinet members and officials from Mandya and Mysuru districts, took part in the bagina ceremony. The bagina, a traditional offering of a saree, blouse piece, turmeric, vermilion, bangles, rice, flowers, and fruits, arranged on a bamboo tray, was let into the waters at the dam. Taking on opposition parties, Siddaramaiah said, 'There were 17 years when KRS didn't have water. When we were in power during drought years, they blamed Congress and me personally. But today, nature has answered those lies. This is proof that nature favours truth and hard work making this a historic day.' He asserted that opposition parties BJP and JDS should stop spreading lies and think that people are fools. Siddaramaiah said his government has sanctioned Rs 25,000 crore to irrigation projects which no previous government has done. 'How could such a large sum be allocated if the government was facing a financial crisis as claimed by opposition parties,' he asked. The government gives out Rs 19,000 crore annually as a pumpset subsidy to farmers, he said, stressing that Karnataka is the only state that is strictly adhering to the Fiscal Responsibility Act, while it has been ranked second in GST collection in the country.
Borneo Post
24-06-2025
- Business
- Borneo Post
Malaysia's rise in global competitiveness rank signals economic resurgence
In the 2025 edition of the annual World Competitiveness Ranking), Malaysia surged from 34th to 23rd place, marking its strongest performance since 2020. – File Photo/AFP KUALA LUMPUR (June 24): Malaysia is making waves on the world stage, achieving a remarkable leap up the rankings that reflects purpose, progress, and promise. In the 2025 edition of the annual World Competitiveness Ranking (WCR) published by the Institute for Management Development (IMD), Malaysia surged from 34th to 23rd place, a jump of 11 spots, marking its strongest performance since 2020. This leap is propelled not only by economic growth but also driven by cohesive policy reforms, investor-friendly governance and a reinvigorated commitment to inclusive development. Malaysia now ranks just ahead of Belgium and Czechia and no longer trails Thailand at 30th. Many celebrated this milestone as a testament to the country's revitalized competitiveness. The Malaysian Investment Development Authority (MIDA) credited the rise to a dynamic, pro-business ecosystem, underscoring recent reforms and the investment optimism they have inspired. To bring these macro reforms into sharper focus, The Borneo Post took a deep dive with Dr. Nivakan Sritharan, lecturer from the Faculty of Business, Design and Arts, Swinburne University of Technology Sarawak, on how the leap in rankings aligns with real-world prosperity. Nivakan Sritharan Malaysia posted a GDP growth rate of 5.1 percent in 2024, with inflation holding steady at 1.8 percent and unemployment near pre-pandemic levels at just 3.3 percent. These figures reflect not just recovery, but sustained economic resilience. According to Dr. Nivakan, 'Malaysia ranked fourth globally in economic performance. That kind of leap doesn't happen without coordinated reforms.' Notably, its standing in economic performance alone catapulted from eighth to fourth in just one year which signifies a clear sign of accelerating momentum. Government and business efficiency also registered impressive gains, both improving by eight positions compared to the previous year. A closer examination reveals that international trade terms, often considered a harbinger of competitiveness, saw Malaysia rise by 11 places to sixth globally. This jump reflects robust export growth, diversification into new trade markets, and stronger tourism receipts contributing to a healthier trade surplus. Fiscal discipline has been central to this resurgence. Malaysia's budget deficit has narrowed to approximately 4.1 percent of GDP which is a significant improvement over previous years. At the same time, the current account surplus has strengthened, supported by a dual export strategy focusing on high-value manufactured goods and commodities. The ringgit too has found greater balance, further enhancing export competitiveness. Dr. Nivakan emphasized the role of the Fiscal Responsibility Act, a landmark policy aimed at mainstreaming budget discipline and reducing public debt. He praised the government's move to transition from blanket fuel subsidies to targeted schemes, an approach that annually frees up approximately RM8 billion. These savings are being channelled into digital infrastructure, green energy, and upskilling initiatives where all of which inject long-term value into the economy. Another plank of the reform agenda is revenue modernization. The introduction of e-invoicing and expanded Sales and Service Tax (SST), alongside a modest dividend tax on higher-income brackets, reflect Malaysia's evolving fiscal architecture. Coupled with strategic expenditure including support for electric vehicle infrastructure where the result has been a more efficient and future-ready public finances framework, signaling clarity and consistency for investors. Malaysia has achieved tangible progress where in 2024, RM378.5 billion in investments were approved, creating more than 207,000 new jobs. The labour force participation rate climbed to 70.2 percent, and median wages increased by 5 per cent, reaching RM3,045 per month. Dr. Nivakan explained that education and workforce development are central to this improvement. Apprenticeships, vocational training under the TVET initiative, and the Talent Roadmap 2024–2030 are equipping Malaysians with the skills demanded by both emerging and established industries. He noted that wage-indexing mechanisms linked to productivity are helping ensure equitable income growth. Malaysia's upward trajectory is also attracting international attention. In 2024, foreign direct investment (FDI) formed about 45 per cent of the total RM378.5 billion in approved projects, driven largely by investors from the US, China, Germany, and Singapore. 'Improved rankings and clearer regulation are giving investors the confidence to commit especially in high-growth sectors like semiconductors, green tech, and digital finance,' said Dr. Nivakan. Indeed, a virtuous cycle appears to be emerging: reform leads to performance, performance attracts investment, investment creates jobs, and improved livelihoods reinforce resilience and confidence. Consumer sentiment is on the rise, and business outlook signifies the heartbeat of long-term growth is strengthening, particularly among SMEs nationwide. Looking ahead, the government's ambition is clear, which is to break into the top 12 most competitive countries by 2033. Achieving this milestone will require sustained momentum, especially in ensuring inclusivity. Infrastructure and opportunities must reach beyond the Klang Valley into rural and smaller urban centres. Educational attainment must be uplifted, incomes aligned with productivity gains, and targeted support maintained for B40 and M40 households. As Dr. Nivakan explained: 'The challenge now is to climb further up the ladder, but without leaving anyone behind. Ultimately, Malaysia's 11‑spot climb in WCR 2025 reflects collective purpose.' It demonstrates how macroeconomic stability, fiscal realism, regulatory clarity, and inclusive policies can align to elevate a nation's standing and the wellbeing of its people. This is about building a foundation on which Malaysia can confidently thrive in the global economy. Dr Nivakan Sritharan malaysia World Competitiveness Ranking
The Sun
18-06-2025
- Business
- The Sun
Fiscal reform to balance financial sustainability, social equity: Treasury sec-gen
KUALA LUMPUR: The government's fiscal reform initiatives, including expanding the scope of the Sales and Services Tax (SST) and rationalising electricity and diesel subsidies, are aimed at ensuring fiscal sustainability while protecting lower-income groups and essential sectors. Treasury secretary-general Datuk Johan Mahmood Merican said one of the key fiscal reform elements is the Fiscal Responsibility Act, which aims to reduce the government's fiscal deficit to 3.8% of gross domestic product (GDP) in 2025 and to 3% by 2028. He said that what has gained attention in recent weeks is SST, and the idea is to approach it in a more targeted manner, which Prime Minister Datuk Seri Anwar Ibrahim said reflects the spirit of social protection. 'How do we then try to approach it more progressively? It is the government that needs to provide additional funding. 'We need to increase our tax base as our tax-to-GDP (ratio) is about 12.5%, which is amongst the lowest in this region,' he said during a session titled 'Social Safety Nets: Securing the Future' at the Sasana Symposium 2025 hosted by Bank Negara Malaysia yesterday. Johan said there is room to increase the tax base for the sustainability of expenditure, as well as growing demands for social protection and basic infrastructure. Thus, there is a need to increase the tax base in a progressive manner, where the government must ensure that basic daily goods are not subject to higher SST. He also noted that from an equity standpoint, it appears highly counterintuitive to allocate the same amount of assistance to both low-income and high-income individuals. As such, the government typically adopts a more targeted approach as part of its broader reform agenda to ensure that aid reaches those who need it most. He noted that the government allocated RM10 billion for Sumbangan Tunai Rahmah in 2024, and this year the allocation has increased to RM13 billion, which includes another aid assistance programme called Sumbangan Asas Rahmah. Meanwhile, he stated that while a progressive wealth tax is intellectually appealing and aligned with Islamic principles such as zakat, it presents major challenges in terms of administration, enforcement and data availability. He explained that income and consumption taxes are easier to manage due to the regular and traceable transactions, whereas wealth is harder to assess and value. At a separate event, Johan said SST collection is expected to increase by RM5 billion in 2025 and by RM10 billion in 2026 following the review and expansion of the tax's scope, which will be implemented starting July 1. He said the additional amount is due to the SST review aimed at broadening the national revenue base. 'The government has taken a progressive approach by expanding the tax base, with the tax burden being skewed towards those who can afford it. This means that when determining the scope and those who are subject to the service tax, as well as the sales tax approach, efforts have been made to ensure it is implemented in a targeted manner,' he told Bernama after a visit to the Royal Malaysian Customs Department in Petaling Jaya. The scope of the Service Tax will be expanded to include new services such as leasing or rental, construction, financial services, private healthcare, education, and beauty services. – Bernama
The Sun
18-06-2025
- Business
- The Sun
Fiscal reform to balance fiscal sustainability, social equity - Treasury Sec-Gen
KUALA LUMPUR: The government's fiscal reform initiatives, including expanding the Sales and Services Tax (SST) scope and rationalising electricity and diesel subsidies, are aimed at ensuring fiscal sustainability while protecting lower-income groups and essential sectors. Treasury secretary-general Datuk Johan Mahmood Merican said one of the key fiscal reform elements is the Fiscal Responsibility Act, which aims to reduce the government's fiscal deficit to 3.8 per cent of the gross domestic product (GDP) in 2025 and further to 3.0 per cent by 2028. He said that what has gained some attention in recent weeks is the SST, and the idea is to approach it in a more targeted manner, which Prime Minister Datuk Seri Anwar Ibrahim said reflects the spirit of social protection. 'How do we then try to approach it more progressively? It is the government that needs to provide additional funding. 'We need to increase our tax base as our tax-to-GDP (ratio) is about 12.5 per cent, which is amongst the lowest in this region,' he said during a session titled 'Social Safety Nets: Securing the Future' at the Sasana Symposium 2025, hosted by Bank Negara Malaysia today. Johan said there is room to increase the tax base for the sustainability of expenditure, as well as growing demands for social protection and basic infrastructure. Thus, he said there is a need to increase the tax base in a progressive manner, where the government must ensure that basic daily goods are not subject to higher SST. He also noted that from an equity standpoint, it appears highly counterintuitive to allocate the same amount of assistance to both low-income and high-income individuals. As such, the government typically adopts a more targeted approach as part of its broader reform agenda to ensure that aid reaches those who need it most. He noted that the government allocated RM10 billion for Sumbangan Tunai Rahmah (STR) in 2024, and this year, the allocation has increased to RM13 billion, which also includes another aid assistance programme called Sumbangan Asas Rahmah (SARA). Meanwhile, he stated that while a progressive wealth tax is intellectually appealing and aligned with Islamic principles such as zakat, it presents major challenges in terms of administration, enforcement, and data availability. He explained that income and consumption taxes are easier to manage due to the regular and traceable transactions, whereas wealth is harder to assess and value. 'I mean, it is very Islamic because zakat, in a sense, is based on wealth. But I think the real challenge -- and it is not just a Malaysian issue but also a global issue -- is that it is quite challenging to administer a wealth tax compared to an income tax,' he added.
