The signs are not good.
Already Malaysia has too many civil servants compared to other countries and if you look at the 2009 Budget from Bernama, you will note that the Government spends just 25% of the RM205.9bil on Development Expenditure and the rest 75% on Operating Expenditure.
This means that out of every tax ringgit taken by the government, only 25sen is used to improve the system and 75sen is needed just to keep the government operating.
Now with the latest move to give civil servants even better benefits like free hospital wards for them and their parents, it seems the government is getting desperate to keep their votes in the next general elections even though it may bankrupt the nation in the long term.
Instead of getting new civil servants into the EPF scheme and teaching them to save and purchase medical insurance for their families, this latest hand-out will only prolong the subsidy mentality of civil servants.
To put the matter into another perspective, this means that in order to raise RM1 the government needs to spend 75sen.
Now if the government can operate like some well-run banks, the income expense ratio should be more like 40:60 which means that 40% of the tax raised can be used to improve the nation through well-devised development projects.
Maybe that is where the GST will be required?