The 2013 Budget offered little to cheer about!

By YB Melanie Chia

 

The 2013 Budget, although seemingly populist because of the subsidies and assistance programmes amounting to a total of RM37.6 billion or 18.6% of total operating expenditure, offered sweetener to a segment of the population for a short term only and are not long term comforter.

These subsidies included the second distribution of BRIM to 4.3 million households with the new inclusion of payment to 2.7 million single unmarried individuals and involve an allocation of RM3 billion.  Another RM1.2 billion is allocated to the Ministry of Women, Family and Community Development comprising assistance programmes for senior citizens, children and disabled workers as well as for chronic illnesses.

Although subsidies have an important role to play in providing a safety net for the vulnerable groups and help to bring down the cost of living and enable access to health and other necessities, the subsidies handout in Malaysia had been misused by the ruling BN government.

In 2007, the total subsidy was only RM10.5 billion.  It is now increased almost four-folds.  One may ask whether the number of Malaysians in need of aids and subsidies have increased because of their deteriorating conditions or was it because they were neglected before.  In either case, the situation reflected the lack of attention by the government on the vulnerable groups in the country in a concerted manner.  And even now, there is still the issue of the genuine needy who do not receive these handouts from the government.  The government has also failed to consider the debilitating effects of subsidies on our economic health.

Taking up the bulk of the total operating expenses is also the emoluments for civil servants amounting to RM58.6 billion or 29% of the total operating expenditure.

In stark contrast is the amount allocated for development expenditure at only RM49.7 billion or only 18.6% of the total expenditure of which only RM30 billion is allocated for infrastructure, industrial, agriculture and rural development.  For Sabah who has contributed substantially to the national revenue collected from the oil and gas sector and the corporate taxes collected from oil palm companies with vast acreage  in Sabah, with only RM30 billion allocated to the economic sector for infrastructure, industrial, agriculture and rural development, how much of this amount will be given to Sabah?

The more pertinent issue for the country is with this low amount for the economic sector, the government would not spur greater economic development for the future.

Increasing Government Debt:  The Federal Government debt is estimated to reach RM502.4 billion in 2012, the highest in the history of the country.  This amount is at the alarming 53.7% of the gross domestic product (GDP) in 2012.  The continuing borrowing and debts by the BN Government is highly unhealthy.

 In the 2013 Budget, the Prime Minister said that among the measures taken to ensure sound public finance are enhancing revenue collection by strengthening the tax system and that implementation of the new tax structure is imperative. 

The people of Malaysia, especially the part of the population that pays taxes, have to be aware of this measure intended by the BN Government.  Behind the giving out of the sweetener is the knife that will cut.

Corruption:  In 2013, a sum of RM276 million is allocated to Malaysian Anti-Corruption Commission (MACC) to combat corruption by increasing an additional of 150 posts to reach a total of 5,000 personnel.  The Prime Minister in the Budget speech said that this measure is expected to help the Government to improve Malaysia’s ranking in the Corruption Perceptions Index.

MACC has no record to brag about and even with the high profile National Feedlot Centre (NFC) graft investigation; MACC was being accused of whitewashing the alleged misappropriation of public funds in the management of NFC.  There are other alleged cases of abuses which seemed to have died a natural death.

Perhaps MACC could pay attention to the 40,000 water tanks costing RM100 million to be distributed in the interiors of Sabah and Sarawak which is allocated under the 2013 Budget.  One of these water tank will cost a whopping RM2,500 each.

Aside part of these 40,000 water tanks which will be shared with Sarawak, what else is Sabah getting in the 2013 Budget?

Instead of reviewing the cabotage policy, the Prime Minister announced that 57 Kedai Rakyat 1Malaysia (KR1M) costing RM386 million will be opened in Sabah and Sarawak.  This allocation would have more direct impact if used to subsidize freight charges of goods to Sabah just like the billions given to subsidize toll charges in Semenanjung Malaysia.  The government has failed to acknowledge the real beneficiary of the KR1M and evaluate if the government and the rakyat are actually getting value for their money in the KR1M.

Improving public transport network especially in the urban areas had been much bragged about since the day of the previous prime minister when the oil subsidy was first reduced.  Sabah was promised allocation since then that the public transport network will be upgraded.  Until today, not much is to be seen.

 In the 2013 Budget, the Prime Minister announced that Syarikat Prasarana Negara Berhad (wholly owned company by the Ministry of Finance Malaysia) is in the process of expanding its services to other locations including Kota Kinabalu.  Is that the way Federal Government help by taking over businesses that can be done by the local people?

Malaysians in Sabah are patient people living in harmony.  But enough is enough.  Please Mr Prime Minister, tells us if the 2013 Budget is to be cheered?