Kuala Lampur, Oct. 10 -- Every year, as budget season approaches, the familiar warnings arrive: Malaysia must show fiscal responsibility and budgetary discipline.

Commentaries bemoan the large sum of government debt (currently at an all-time high) and urge prudence. International ratings agencies and global banks warn of downgrades and negative market reactions should we dare deviate from the fiscal consolidation path.

We are told to cut public spending, raise taxes, and above all - heed the market. Governments, we are told, should behave like frugal households.

Of course, this government-like-households analogy is wrong-headed where it matters most. For one, governments are not like households at all, and do not share the same borrowi...