Get Sponsored Please visit our Sponsers. As such, there will not be much point in my rehearsing them here. And so perhaps a space like this is better devoted to presenting those aspects of the Budget which I feel are important but which may have not been given the prominence I think they ought to have. The centrality of competent execution of monetary policy to the stability of output is today a proposition which is virtually undisputed in macroeconomics. Given this, I was therefore disappointed that not enough had been done to dampen domestic credit growth and hence money supply expansion.
Credibility is also an important issue here.
This adds to our costs of doing business because investors will now demand a higher risk premium on their investment ventures. To this end, one hopes that Bank Negara will carry out its mandated objectives. Needless to say, injecting liquidity runs counter to the objective of reigning in credit growth. I would have thought that the projected slower economic growth on its own would have done much to reduce imports of these items. As such, I question whether increasing these tariffs are really necessary and whether they would have a tangible effect upon the deficit.