Updated: Fri, 25 Oct 2013 10:38:04 GMT | By The Malaysian Insider : Malaysia

Najib’;s budget shows no serious attempt to cut spending, says DAP

Prime Minister Datuk Seri Najib Razak's administration is only interested in cutting subsidies and raising tax without any intention to tighten the government's purse strings, said a DAP lawmaker today. Petaling Jaya Utara MP Tony Pua noted that nothing in the 2014 Budget and Najib's second term as prime minister, would change if it was...


Malaysia Insider

Prime Minister Datuk Seri Najib Razak's administration is only interested in cutting subsidies and raising tax without any intention to tighten the government's purse strings, said a DAP lawmaker today.

Petaling Jaya Utara MP Tony Pua noted that nothing in the 2014 Budget and Najib's second term as prime minister, would change if it was stripped of its "comestic makeup, taking away the glossy distractions and analysing the bare bones”.

"The Economic Report 2013/14 gave the good news that the expected revenue collection for the current year 2013 is RM224.1 billion, or RM14.4 billion higher than the original budget projection of 208.7 billion.

“By right, the RM14.4 billion increase in revenue should have resulted in lowering the projected budget deficit of 4% to a market-euphoric 2.6%. The budget deficit for 2013 should have shrunk from RM39.9 billion to only RM25.6 billion," he added.

He said that despite collecting the significantly higher than expected revenue, the deficit for 2013 remained at RM39.3 billion.

"It means that almost every single sen of extra revenue collected by the government is immediately expended, instead of contributing towards reducing our debt."

Malaysia Insider

Pua (pic) also noted that in terms of development expenditure, the government spent RM2.7 billion less than the budgeted RM47.8 billion.

Development Expenditure includes building schools, hospitals and other public infrastructure.

"The lower than budgeted development expenditure and the higher than expected government revenue meant that the government's operating expenditure exceeded the budget massively. The government overspent in operating expenditure by RM14.3 billion more than the original budget of RM201.9 billion.”

This, he said, paints a forlorn picture of the government's finances, adding that the Barisan Nasional (BN) administration has “consistently and significantly” overspent the Budget annually for the past 15 years.

"A review of the 2014 Budget will show that it is primed for the same inevitable outcome as that of the past. The prime minister is seeking the Parliament to increase the operating expenditure further to RM217.7 billion, despite a massive RM7.3 billion cut in the subsidies budget from RM46.7 billion in 2013 to RM39.4 billion in 2014.

"This means whatever is saved from the subsidies reduction goes towards other government operating expenditure," Pua said.

He expressed his shock that Putrajaya found the need to increase the budget for “supplies and services” especially since the budget for it in 2010 was only RM23.8 billion.

"That is a 53.8% increase in spending for 'supplies and services' in just four years", he added.

Najib had earlier announced that "supplies and services" will enjoy a RM2 billion increase in allocation to RM36.6 billion for 2014.

"Why is the government asking ordinary Malaysians to tighten their belts and suffer higher prices, when it chooses to continue with its big spending ways with 'supplies and services'?"

"The subsidy cuts are not going toward reducing our debt or deficit. Instead it is just providing more funds for the government to go shopping."

He pointed out that the “scandals” uncovered in the Auditor-General’s Report annually are all part of the "Supplies and Services" budget.

"One can easily tell that this government has its priorities all wrong, when they decided to increase operating expenditure, but at the same time reduce development expenditure.

"The proposed GST is a measure of desperation to continue filling the coffers of the government so as to reduce the need for the BN administration to cut down on its excesses."

Calling it "Najibnomics", Pua said that Putrajaya is taking the easy way out by cutting subsidies and raising taxes to "satisfy its out-of-control operating expenditure”. - October 25, 2013.

0Comments