How Budget 2011 broadens the tax base

WE had a steady Budget 2011, crafted carefully to suit the current economic circumstances, where Malaysia is experiencing a recovery amidst a global recovery that is said to be uncertain.

There are a few things Malaysia can be pleased about: expected GDP growth of about 7% in 2010 (compared to a contraction of 1.7% in 2009), and reduction in the budget deficit from a high of more than 7% in 2009 to 5.6% in 2010. The plan to reduce the budget deficit further to 5.4% in 2011 is directionally correct and delivers on the commitment made last year to address the budget deficit that Malaysia has experienced since the 1998 Asian financial crisis.