Growth despite a bankrupt state?

According to return expectations, the year 2010’s first semester’s figures are encouraging. They failed from reaching the expected 1058 billions, however. The 989 billions of ariary recorded inside state chesses are an acceptable score. Tax returns largely contributed to such a good result since the collection rate overpassed 100%, and returned 587 billions of ariary. Custom tax returns provided 379 billions, 86% of expections.
The HAT expected the quick recovery of international support in the run of the year 2010, when patching its finance law up. Although the prophecy proved to be a dead duck, the missing 308 expected billions do no look that big. In the end, the state would have recorded the return of 0 ariary by the end of June. Only 2% of public investments are internationally supported, namely by relics of funds granted before the crisis.
the State is out of money, and saing it loud is now allowed. The HAT sacrificed the PIP (Public Investment Program), only 6.15% of public expenses, during 2010’s first semester, for the sake of granting new buildings to university students and supplying the Interior ministry preparing the elections; naturally political choices targetting the elections. The state is anyway reducing expenses, as theses only represent one fourth of a 3355 billions budget instead of one half of it.
The lack of financial support from abroad would have been a problem anyway. Only 81 billions have been made available for public investments instead of the expected 1329 billions. An alteration of the finance law is equally expected to integrate WISCO’s granted 100 billion dollars. The presidential plane is still for sale. Rumors about the french president’s demand of an « Air Elysée » aircraft is the next best occasion to make business. 60 billion dollars for a top class aircraft are a bargain.

The HAT is definitely altering the economic rules, officially, in the population’s interest. It blocked the fuel price rise and denied the Jirama the right to rise the electricity price by 8%. The inflation has consequently been mastered by force at 9.7%, far below the expected 13%. Although growth figures are remaining positive, they’re far from capitalizing in the reality. The HAT expected a plus 2.6% by the end of the first semester, but had to deal with merely 0.8%.
Strikes engaged by students, professors and administration staffs throughout universities are demonstrating how short for money the state really is. The finance ministry is calling upon the other departments to engage on more austerity, furniture supplies are going to be reduced. In the end, the austere finance law drawn by the HAT also proved to be far too ambitious