The Cambodian government must consider stimulus package and I absolutely agree with Mr. Sam Rainsy. In fact, I even would double the amount, by taking advantage of the crisis as further motive for development
- From: Chim <ChimS1@xxxxxxx>
- Date: Thu, 7 May 2009 11:26:30 -0700 (PDT)
Govt must consider stimulus package
Written by Sam Rainsy
Thursday, 07 May 2009
Dear Editor,
In "ADB to launch $3bn fund" (May 4, 2009), the final paragraph
elaborates on how governments in Asia are battling the global economic
crisis. "Governments across the region have boosted spending and
slashed interest rates in a bid to stimulate domestic demand to offset
crashing external demand for exports."
The above assertion does not apply to Cambodia, where there has been
no significant increase in government spending over the last 12
months, while interest rates have remained practically unchanged at a
very high level: up to 8 percent per annum for deposits in US dollars
and up to 30 percent per annum for loans also in US dollars, given
that some 95 percent of the money supply is made up of greenbacks.
Even though the state budget for 2009 - as approved by the National
Assembly last December ($1.75 billion) - shows a 28 percent increase
on
paper over the 2008 budget ($1.37 billion), its actual implementation
indicates no significant increase, if any, over last year's spending.
The shortfall in expenditure is due to a shortfall in revenue
associated with the current economic slump.
As of today, the government has informed the National Assembly of no
plan whatsoever to update, revise or adjust its budget as a possible
reaction to the current economic and financial situation, which keeps
deteriorating. I am only talking about the regular state budget as
adopted every year by the National Assembly. I am not referring to any
special measure, budget or plan.
Contrary to all neighbouring countries, no economic stimulus package
has been conceived and implemented to cope with the world economic
meltdown. The government has apparently no comprehensive and
consistent plan to face the unfolding crisis.
I, therefore, insist that the government shows responsibility and
seriously considers the $500 million economic stimulus package that I
have suggested (see "SRP calls for government bailout" in the January
19 edition of the Post).
This $500 million package would be the first emergency measure
designed to alleviate the fallout from the world crisis and to prevent
economic, social and political upheavals with incalculable
consequences for Cambodia's stability and long-term development.
Sam Rainsy
Member of Parliament
.
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