Saturday, May 21, 2011

malaysiakini on PEMANDU and cutting Subsidies....You Forgot the BLOATED Civil Service!

I believe in a free market in general and so I believe any government program on control and subsidies will result in distortions and an inefficient market.
We spend so much energy on trying to control prices and sometimes the cost of such control is too we have a special group like PEMANDU to propose ways on how to improve government performance.
Yes, they have proposed how the petrol price of RON95 should be increased so we can cut may RM20bil of the cost of this subsidy program.
But we all know that the civil service is also too large and I would guess by 40% overstaffing and the cost per year to taxpayers would certainly be more than RM1bil if we reduce the numbers by 100,000. So where is PEMANDU'S graph to reduce the numbers in the civil service? We have spent billions in ICT but instead of the numbers reducing, they somehow grow by leaps and bounds.

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