The floodgates are opening (excerpt):
KUALA LUMPUR: Those who earn more than RM10,000 per month will not enjoy any fuel subsidy under the subsidy rationalisation scheme to be implemented next year.
In announcing this Monday, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the programme would be divided into three tiers.
After early whispers before the budget, it’s now way out in the open. But, there’s much better ways of managing this than shifting to a convoluted system that’s going to be full of holes. Here’s one fellow Tweeter’s take on it (it’s in BM, but that shouldn’t be a problem, right?).
My personal view is that we already have an existing mechanism for transfers under BR1M – just expand on that, since we’re looking at more or less the same constituency. Having a separate system (with different income thresholds to boot), is a recipe for higher costs and leakages.
More to the point, I’m leery of the idea that we must have specific subsidies for petrol, food, or whatever, as some people have been suggesting as alternatives, like food stamps or petrol cards. The basic, underlying, fundamental, primary, chief, key, crucial, supreme, critical, essential, vital and uppermost objective isn’t cheaper food or cheaper petrol for lower and middle income households, it’s really about income support for a decent standard of living.
Different households will have different consumption patterns, which means that you won’t be affecting even households at similar income levels alike. Cash transfer are far superior to any other alternative.