Regaining fiscal space via subsidy rationalisation

AFTER months of speculation, and in its effort to get the ball rolling, the government finally floated the price of diesel in the market at RM3.35 per litre, a big 55.8% jump from the previously fixed price of RM2.15 per litre.

According to the Finance Ministry (MoF), the real intention is to generate savings from apparent smuggling activities and leakages, which cost the government more than RM14bil last year.