Government is facing a fiscal crunch thus need to implement GST and a previous plan of Dato Najib for targeted subsidy. The timing could not be any better with current shortage of rice, rising sugar and bread prices, planned electricity tariff increase on the card, chicken and egg going up, etc.
Economic Minister Rafizi is being picked on for past campaign remarks against Najib's administration on weakening ringgit, GST, China FDI, rising food prices and any present economic problem besieging the present government. More so, he explicitly expressed resistance to Najib's pardon and most likely will oppose in cabinet an RCI on Tommy Thomas.
But he need a full Unity Government support for his budgetary reform. Putting the politics aside, the budget could only be put together from available resources and if it is not permissable, drastic action need be made.
Timing is bad to introduce GST as a mean to raise revenue. It is left to adjust the expenditure side. Targeted subsidy would likely be in the card. The hint in that direction is obvious when a member of Anwar Ibrahim's team of economic adviser, contributed an article to The Star on the subject.
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