Idris Jala is really courageous to try to communicate the painful proposal of removing subsidies, when we have got used to them. In some ways he is right – debts growing at 12% per annum are not sustainable unless new revenue streams are created; RM74 billion in subsidies is huge and the savings of RM103 billion looks promising if we are prudent in our ways.

For a responsible government, it has to take steps to control wasteful expenditure. The Auditor General’s Report is littered with wanton expenditure beyond budget or commonsense. Reducing operating expenditure is the first step.

The next is to see whether there is any room for tax enhancements. There are at least six areas/ sectors where higher taxes could be levied without too much pain - gaming; cigarettes; fast foods; utilities; petroleum and banking

If we are sincere we will recognise that both gaming and cigarettes don’t add significant value to the economy and are detrimental to the health/welfare of society. So it is with fast food. It will not be too horrendous if we levy a 15% resource tax on these three items.

Utilities – particularly power producers – may wish to contribute to a ‘Green Tax’ of 10% that will help develop renewable energy. Petroleum producers, similarly, could be persuaded to this new Green Tax for reducing their carbon footprint.

Banks are reporting healthy profits in recent years – thanks to taxpayers’ money in stabilising the banking system during the crisis years (1990-2000). The full cost of which was never recovered.

It is therefore appropriate for them to allocate 10% of their profits for a Bank Stabilisation Fund (‘Fund’) that could be used in adverse times. Bank Negara being the administrator of the Fund.

With the above, the current budget deficit may not only be reduced but perhaps achieve a small surplus. We are not going the Greek way because we are in a better shape than Greece – external debt is low; large forex reserves; high savings rate and, a more hardworking workforce.

Subsidies occur in developed countries as well – so it is no new phenomena. If we have to remove selected ones then ‘wean’ them off post 2013 – from, at least, a political perspective.