Latest news with #Fiscal
The Star
11 hours ago
- Business
- The Star
'Economy grew better than expected', PM defends reforms
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has defended the government's handling of the economy, asserting that although the reforms may be challenging, they are beginning to yield real and positive results. Speaking at the monthly gathering of Finance Ministry staff, Anwar acknowledged public concerns and online criticism that the government is not managing the economy well, overspending, or making life harder with new taxes and reduced subsidies. "We are burdened with a tired fiscal system, weighed down by old debts and a narrow income base," he said. "But like it or not, we must reform, even if it's tough," said Anwar on Friday (June 20). Anwar stated that the country's economy is improving in several key areas. Malaysia has jumped 11 places to 23rd in the world in the latest global competitiveness ranking — the best score since 2020. "The economy grew by 5.1% in 2024, better than expected. The unemployment rate is down to 3.0%, the lowest in 10 years, and the ringgit has strengthened, gaining over 5% against the US dollar this year. "This shows the world is recognising our reforms and investors are responding positively to the direction we're taking." He said Malaysia's financial discipline is also gaining international praise. The International Monetary Fund (IMF) recently commended the country's efforts to control spending and debts, particularly the introduction of the Fiscal Responsibility Act 2023. "Government spending is now more careful, with fewer new debts and a shrinking fiscal deficit, which dropped to 4.1% in 2024." Anwar also stated that reforms are not about abandoning the people. "Instead, help is being delivered in a more targeted and effective way, where in 2023, 85% of households were unaffected by changes to electricity subsidies. "Diesel subsidies were adjusted in 2024 to reduce government spending without raising the cost of goods, as the logistics sector continued receiving support." He said the expanded sales and service tax (SST) changes starting in July 2025 will not affect essential goods. "We're not just saving money, we're using it better, for the people who truly need it." With more efficient use of funds, the government has been able to increase support where it matters most. Anwar said a record RM13 billion in cash assistance through the STR and SARA programmes will benefit nine million Malaysians, or 60% of the adult population. "Budgets for public services have also grown, with RM64bil allocated for education and RM45bil for healthcare in 2025. We're making sure these savings go back to the people — in the form of better aid, education, healthcare, and public transport." Anwar said Malaysia can no longer afford to do things the old way. Reform is hard, but necessary. "This is a journey of courage and commitment," he said. "With teamwork, understanding, and the will to do the right thing, we can carry out this trust with full responsibility." He urged civil servants and the public to stay united, work hard, and believe in the path the country is taking.
The Hindu
6 days ago
- Politics
- The Hindu
AP conspiring to illegally divert Godavari water to non-basin areas: Harish Rao
HYDERABAD The Bharat Rashtra Samithi (BRS) has accused the Andhra Pradesh Government of conspiring to 'divert Godavari water on a large-scale, 200 tmc ft a year initially and 400 tmc ft later, to outer basin areas in that State, particularly to the Krishna and Penna basins at the cost of riparian rights of Telangana within the basin'. 'However, our Chief Minister A. Revanth Reddy was keeping mum on the issue, and so were the two Union Miniters G. Kishan Reddy and Bandi Sanjay Kumar,' senior BRS leader and former minister for irrigation T. Harish Rao alleged while making a detailed powerpoint presentation on the Polavaram (Godavari)-Banakacherla (Krishna) Link here on Saturday. 'AP is conspiring for huge water theft without seeking any clearances and approvals, including by the Godavari and Krishna River Management boards (GRMB & KRMB), the Apex Council and statutory agencies such as the Central Water Commission (CWC), GWDT and KWDT and others,' Mr. Harish Rao said. He added that tenders for the project to be taken up with ₹80,000 crore were being called in the month-end and the Centre had also offered 50% of the funding as part of the interlinking of rivers (ILR) and the remaining as borrowing facility beyond the Fiscal Responsibility and Budget Management (FRBM) limits. He reminded that the Centre had deducted Telangana's borrowing for the Kaleshwaram project from PFC (Power Finance Corporation) and REC (Rural Electrification Corporation) from FRBM limits. AP CM Chandrababu Naidu had written to the Centre and CWC against the Kaleshwaram (June 13, 2018) project even after it was given all approvals as an ongoing project in place of Pranahita-Chevella, the BRS leader said. He also wrote against Kalwakurthy LIS, Palamuru-Rangareddy LIS, Bhakta Ramadasu LIS (SRSP tail-end), Tummilla LIS (RDS) and others, all aimed at serving the designed ayacut, to meet shortage of flows in the original plan. He alleged that AP was conspiring to divert Godavari water to claim rights on it in the future by seeking re-allocation of water by the GWDT (Godavari Water Disputes Tribunal). He stated that Telangana had allowed AP to draw 72.2% of the Krishna water (577 tmc ft) against the adhoc arrangement of 512 tmc ft during the last water year. Similarly, for the first time since its formation Telangana had drawn 244 tmc ft (27.8%) against its adhoc share of 34% (299 tmc ft). Mr. Harish Rao demanded that the Telangana Government convene and all-party meet to stop exploitation by AP, convene a special session of the Assembly to discuss the issue, move the Supreme Court and also stop lining of the Srisailam Right Main Canal of the Srisailam Right Bank Canal project to allow carry 90,000 cusecs of water from Pothireddypadu Head Regulator (PRP-HR) from the existing 44,000 cusecs.
Business Recorder
07-06-2025
- Business
- Business Recorder
Fixing budget to unleash growth
Every year, Pakistan's federal budget arrives with familiar choreography: a frantic scramble for revenue, a ritualistic promise of belt-tightening, a prayer for donor approval—and, inevitably, a deepening economic funk. The budget, instead of being a strategic tool to unleash growth and build reserves, has become a reactive exercise designed to appease creditors and perpetuate the status quo. This is not just a budgeting problem—it is a full-blown political economy failure. To break this cycle, we must fundamentally reimagine the budget—not as a ledger-balancing ritual, but as the central engine of economic revival through a sustained growth acceleration. Bloated government Pakistan's budget has historically expanded alongside a steady growth in government spending—starting with the welfare and development spree of the Bhutto years. Since then, successive governments have continued to bloat expenditures, expand political patronage networks, and indulge in borrowed vanity projects. Unsurprisingly, the lion's share of the budget is now devoured by a bloated and inefficient government machinery—ministries, SOEs, elite subsidies, and ever-growing civilian and military pensions. Development spending (PSDP) does not fare much better. It is either slashed mid-year or burned on politically motivated brick-and-mortar projects that neither raise productivity nor enhance exports. Numerous studies show that public investment in Pakistan is failing to crowd in private capital, generate jobs, or enhance competitiveness. No surprise, then, that economic growth has been on a steady downward slope this century. Don't tax the economy to death Maintaining the donor mantra that the 'tax-to-GDP ratio is low,' the IMF responds to our fiscal deficits by prescribing more and more taxes. When unrealistic revenue targets fall short, they roll out the usual remedy: 'further taxes,' 'additional taxes,' 'super taxes'—all piled on top of already over-taxed sectors in the infamous minibudget blitzes. The result? A regressive, volatile, and thoroughly anti-growth tax regime. Pakistan's real problem is not just low revenue—it is the structure of revenue—complicated, intrusive, and volatile. The consequence is a skewed, unjust, and investment-suppressing system. As deficits ballooned alongside unchecked political largesse, public debt skyrocketed past the 60 percent of GDP ceiling set by the 2003 Fiscal Responsibility Act—an IMF-sponsored law. Today, over 50 percent of the federal budget is consumed by interest payments. Yet both federal and provincial governments continue spending with abandon. Just in FY2025, they added over 60 new government agencies. Apparently, austerity is for textbooks — not our political class. A good budget To shift the budget toward growth, we must reframe our fiscal strategy around three core objectives: investment facilitation, economic restructuring, and foreign exchange generation. Our fiscal culture is rooted in control. Every economic activity is smothered in paperwork, redundant approvals, and bureaucratic misalignment. The budget must empower cities, universities, and private innovators—not just federal ministries. Local governments have been 'in the pipeline' for decades. While this issue lies beyond the immediate scope of the budget, it is crucial that administrative decentralization and institutional autonomy be pursued with proper performance checks and accountability frameworks. Perhaps the most urgent—and overdue—reform is the restructuring of the Planning Commission and the PSDP. The Haq/HAG model of brick-and-mortar development must evolve into a productivity-enhancing strategy. Let us transform the PSDP into a competitive grants framework—empowering cities and knowledge institutions to innovate, tied to clear outcomes in research, urban regeneration, and enterprise development. Likewise, the Planning Commission should be converted into a genuine reform engine—steering away from bloated plans and abstract visions that no one reads, let alone implements. And yes, this also means an end to discretionary funds and politically captive schemes. Enough random taxation The obsession with squeezing more out of the same tax base is strangling the economy. We need to broaden the base by simplifying, lowering, and stabilizing the tax structure—rather than repeatedly taxing the same goods and sectors into oblivion. As we outlined in the Haque Tax Commission Report of 2024: a) Simplify the tax code and reduce compliance burdens b) Replace withholding and turnover taxes with a value-added tax (VAT) system, with automatic and credible refunds c) Streamline documentation requirements for entering the tax system d) Broaden the base through digitization and administrative ease e) Most importantly, stop the frantic revenue drives that inject volatility, erode confidence, and drive away both domestic and foreign investment A good time to open the economy The relentless thirst for revenue has turned tariffs into a catch-all crutch—even exports now suffer because import duties are raising the cost of globally integrated inputs. Worse still, policy remains trapped in an outdated import-substitution mindset that rewards rent-seeking rather than export excellence. It is time for a bold pivot: abandon import substitution and stop using tariffs as a revenue crutch. Elementary economics teaches that tariffs are used to prevent a needed exchange rate adjustment. Tariffs can never be a competitive strategy. If we are serious about export-led growth—not just sloganeering—we must let the rupee find its true value, open the economy, and dismantle protectionist walls. Make the budget a living, transparent document For two decades, we have had a grand-sounding World Bank project—PIFRA ('Project to Improve Financial Reporting and Auditing')—with nothing to show. We still lack basic budget transparency. Follow the rest of the world and now adopt accrual-based budgeting across Pakistan. Here is a modest proposal for the finance minister: Make PIFRA live for public access this year. Put real-time dashboards online so citizens can trace every rupee spent. Growth is the only way out Our fiscal burden continues to grow as economic growth slows. The only way to break free from perpetual debt, IMF bailouts, and creeping default is through a sustained acceleration of private sector-led growth. This must be the cornerstone of budget policy: raise private investment from today's pitiful 8–9 percent of GDP to over 20 percent in five years. Deregulate. Open up. Simplify taxes and documentation. Build a performance-oriented public sector that enables growth—not one that chases after taxes with a club and spends the money on useless projects, bloated government, and patronage. Copyright Business Recorder, 2025
Business Insider
06-06-2025
- Business
- Business Insider
AVGO Earnings: Broadcom's Financial Results Squeak by Wall Street Estimates
Chipmaker Broadcom (AVGO) has reported Fiscal second-quarter financial results that narrowly beat Wall Street's forecasts. Confident Investing Starts Here: The Silicon Valley-based company announced earnings per share (EPS) of $1.58, which was ahead of the $1.56 expected among analysts. Revenue of $15 billion edged the $14.99 billion consensus expectation of analysts. Sales were up 20% year-over-year. In addition to the solid print, Broadcom's management team offered robust forward guidance, saying they now expect about $15.80 billion in Fiscal third-quarter revenue, versus $15.70 billion that was expected on the Street. Broadcom's income statement. Source: Main Street Data AI Impacts Broadcom said it had $4.40 billion in AI revenue during the latest quarter. Looking ahead, Broadcom said that it expects $5.10 billion in AI chip sales during the current quarter, adding that 'hyperscale partners continue to invest.' Hyperscalers refers to companies that build large cloud systems such as Amazon (AMZN) and Microsoft (MSFT). Sales to hyperscalers are reported in Broadcom's semiconductor solutions business unit, which had $8.40 billion in revenue during the quarter, a 17% increase from last year, and above the $8.34 billion that analysts anticipated. The software business, which includes VMware, grew 25% year-over-year to $6.60 billion in sales during the quarter. AVGO stock has risen 13% this year. Is AVGO Stock a Buy? average AVGO price target of $256.04 implies 1.50% downside risk from current levels. These ratings are likely to change after the company's financial results.
Yahoo
05-06-2025
- Business
- Yahoo
Bristol, TN City Council approves $155M budget on first reading
BRISTOL, Tenn. (WJHL) — The Bristol, Tennessee City Council unanimously approved the city's 2026 fiscal year budget on its first reading Tuesday. The budget, which would cover the fiscal year starting July 1, 2025 and running through June 30, 2026, totals $155,439,488. 13 ETSU students from countries affected by recent travel ban According to the agenda from the meeting, the Fiscal Year 2026 budget reflects an increase of $6.2 million from the Fiscal Year 2025 budget. The budget is broken into two parts: the municipal government portion and the school system portion. The municipal government's portion of the proposed budget is $96,004,212. The Bristol, Tennessee City Schools portion of the budget sits at $59,435,276. According to the city, the proposed budget is still considered a draft since Bristol, Tennessee has not yet received a certified tax rate. 'Based upon preliminary data available, property tax revenue has been included with approximately a $2.04 tax rate per $100 of assessed value,' the agenda states. Bristol, Tenn. City Council rescinds Tod Houston Field agreement According to city leaders, the budget's core focuses are on economic development, education, infrastructure and public safety. The agenda states that all city programs and services will remain as they have, while the increased budget also allows for more capital investment. Bristol, Tennessee waterworks projects will continue into the next fiscal year, which the budget plans for. The next public hearing and second reading on the budget will be at the city council's June 19 meeting. To see the full agenda regarding Tuesday's reading of the budget, Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
