I don't understand the logic behind all these!

We were told during the Budget 2009 that about 40% of Federal Government's spending comes from Petroleum and Petroleum related products.

We observed that the Crude Petroleum Oil went down from the estimated figure in Budget 2009 at USD125 to USD36 as of 24th Dec 2008.

This means a sharp decrease of 71%, which affects income of Federal Government to support its operation for year 2009.

Thus, the Federal Government is short of 28.4% to finance its activities as budgeted.

Based on the estimates, if the Government is subsidizing RM0.30 per litter on Petrol, at the point Budget 2009 was announced, the total subsidy for Petrol used in Malaysia is RM7billion for year 2009 as originally estimated.

Now the subsidy no longer there, the Federal Government instead taking this "savings" and pump it back to the economy under the name "stimulus package".

But if the subsidy is eliminated due to drop in petrol prices, what will it affect the spending part of the Federal Government where 40% of its operations comes from petrol money?

We are talking about RM43.7billion short here under Federal estimated spending for year 2009, where the total spending is estimated at RM154billion for the year 2009.

Yes, the Government saved the RM7billion, and "generously" putting back to the economy (in actual fact, the RM7billion should not be there at all if the subsidy scheme still carry on). Means the Government is in fact, taking available cash from all of us, and put it to its nicely dressed "stimulus package" by means of re-distributing the wealth supposedly in our pocket.

Thus, the RM7billion actually does not exist. However, even it does exist from the point of savings in terms of subsidy, it is totally wipe off if you look at short of RM43.7billion next year.

How would you pour RM7billion when you are short of RM43.7billion??

How will the Federal Government finance this??

Ask your MPs, especially those who supported the RM7billion "stimulus" package, where is the money coming from when the total estimated income shrink by 28.4%, even if deficit is 1.2% higher then the original estimate of 3.6%, i.e. 4.8% now, it still does not make up the figures.

Unless I am wrong. Can someone tell me how I go wrong?