Federal Government Debt Malaysia

T presents a lot of misconceptions and misunderstandings regarding the take and sustainability of regime debt, which has been seriously skewing the public discourse not just now slightly Europe and the US and here as well. [For examples, here, here, here, here andhere]. Rather than arguing the points one by one, Im putting up this FAQ as a central quality point, with some faint hopes that we might move on to a better informed debate about the issue. Itll be useable as a permanent page ( fetch up the menu on the top right of all(prenominal) page on this b pound), and Ill update it from date to time. The focus will be on the Malaysian situation, but some of the general principles are relevant elsewhere as well. First the raw info (RM millions; try period 1970-2012, with 2011-2012 data based on estimates): Up to 2Q 2011, regime debt in heart has secureed RM437 billion, or approximately 53% of titular GDP: priming on Bud break down 2012 numbers, total political sympathies debt outstanding should pass on just over RM495 billion by the destination of 2012. The average rate of increase for the last 40 odd years has been about 11% in log terms (log one-year changes): And on a per capita basis (RM): Based on 2012 numbers, the per capita debt should reach a little over RM 17,000 per someone by the end of that year.

Finally, the fiscal deficit (ratio to nominal GDP): Youll see from the above that its not unusual for Malaysia to run a fiscal deficit in fact its been the norm, overleap for a neat period in the mid-1990s. Now on to the FAQ: Q1 . Government debt is comparable household d! ebt if we spend more than we earn, well go bankrupt A. Thats the common sense view, and its one thats normally held. The paradox is that its also mostly wrong. Heres where the misconception lies if youre a household, you earn income based on your process and investments. For a company, income depends on selling the goods and services it produces. For both parties, that income represents the upper...If you desire to get a full essay, order it on our website: OrderCustomPaper.com

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