From Malaysian Insider
By Asrul Hadi Abdullah Sani
Datuk Seri Anwar Ibrahim (picture) today slammed Budget 2010 as a “short-term” government policy that only benefitted concessionaires but not the people due to the Barisan Nasional’s financial management weaknesses.
The former finance minister also noted that the people will enjoy welfare provisions in the form of exemptions and tax relief totalling RM500 million but the government will recoup more from new fees charged on credit cards and real property gains tax.
“It is estimated that government income will be more than RM400 million from credit card fees that the people have to take out of their pocket,” the Parliamentary Opposition Leader said while debating Budget 2010 proposals in Parliament.
“This does not include real property gains tax by 5 per cent, which was reintroduced. Revenue from card fees and real property gains tax is far more than welfare distributed to the people through tax cuts and exemptions,” added the Permatang Pauh MP.
Prime Minister and finance minister Datuk Seri Najib Tun Razak tabled the RM191.5 billion Budget 2010 last Friday, promising to slash the 2010 deficit from its highest level in more than 20 years, although he provided few clues as to how the cuts would be realised.
Anwar, who was sacked as deputy prime minister and finance minister in 1998, pointed out that the total welfare for the people is still too small compared to the subsidies received by government concessionaires.
He added in a recent financial report stated that concessionaires enjoyed a gas subsidy of RM20 billion in 2008 and increased to RM 22 billion in 2009.
“Imagine if the subsidies are distributed to the people. Every Malaysian will receive approximately RM815 each,” he asked.
Anwar noted Malaysia has been experiencing deficit for the 13 consecutive years and questioned if the deficit spending is due to the administration’s belief in “welfare of the people first” or is it due to the weaknesses in the economic management of the current government.
He pointed out that Malaysia’s debt went up 18.3 per cent from RM306.4 billion in 2008 to RM362.5 billion in 2009 while since 2006, the national debt has rose 49.7 per cent from RM242.2 billion and the percentage of debt to GDP increased by 41.5 per cent in 2008 to 52.4 per cent in 2009.
He also said state oil giant Petronas’ contribution has doubled from 2005 to 2009 while petroleum and gas reserves has not changed although operating costs have tripled during the same period.
“For the year 2008, the government has allocated RM177 billion of which RM74 billion (42 per cent) contributed by Petronas. This does not include revenue from other companies in the petroleum industry. If taken into account, the estimated income from the petroleum industry reached over 60 per cent.
“While in 2006, the fraction of direct government tax collection ratio is 46 per cent tax on companies, 32 per cent petroleum tax and 15 per cent individuals tax,” Anwar said.
While the government did not announce the breakdown of tax revenue expected in 2010, he said, the general expectation was that petroleum tax is already exceeding the company tax contributions.
“Which raises question marks about the competitiveness of our economy and if it is too dependent on the petroleum industry,” added Anwar.
The Budget debate continues.
Maybe the PR rule will have a better budget for all malaysian…A Thruly People Budget For Once !
Reply
Dear Anwar,
You share the same sentiment as most of us common Malaysians. Why the need to impose additional charges on one’s Credit card in order to curb over-spending? I can’t see the logic behind it..
On the contrary, can the PR goverment share with us on how it would have spent the budget instead? I am sure PR populist approach would have been well received by the common folks (read: RAKYAT)
So much has been said, even debated..it’s time to prove it by walking the talk.
Reply
Please fight for us, cost this Credit card tax is KILLING us, some people like myself will need LOT of money to pay all those cards, not mentioned, some we cannot cancel due to some reason or remain installment plan and force to feed this Najib so much money…This is NIGHTMARE for us!! Because you think those money will go back to us?? Where did u receive anything good from this BN?? they only good in talking then take our money only, is this not suffer enough?? Hopefully the bank and the people will fight this off, as this is crazy!!
Reply
Time for you to unveil your own shadow budget so we can contrast it with Budget 2010
Reply
Ya.. short term budget is enough for them to exploit or abuse the public fund before they are finished in next GE. By then Malaysia is bankrupted. I hope the BN ruled government does not get complacent or arrogant that they can take away the wealth of Malaysia which we have been built all this while.
Time to change even if PR is not proven rather we Malaysian losing the wealth to arrogant leaders exploiting the situation.
Reply
dah lah tu anwar… najib dah bagi budget terbaik ni… tak kan semua nk blame… sokong pulak lah… saya ada baca text n isi ucapan budget 2010… mmg untuk rakyat… budget rakyat… tak banyak tentang pembangunan… tp concentrate kat pendidikan and pertanian… elok lah tu… semua dapat merasa melimpah ruah ny rezeki kat bumi Malaysia ni…
Reply
PROF DSAI, YOU HAD PREVIOUSLY SUBMITTED A BUDGET AND THERE WERE ELEMENTS THAT WERE NOT WELCOME THEN. HOWEVER, YOUR PRESENTATION SKILLS WERE BETTER RECEIVED EVEN BY NAJIB! YES, NAJIB’S IS A SHORT TERM POLICY (1 YEAR); AND IN THIS ONE YEAR WE FEAR SOME DIFFICULTIES WOULD SURELY UNEARTH!
CAN YOU PLEASE PRESENT AN ‘ALTERNATIVE’ ON HOW TO MAKE THIS BUDGET MORE FRIEDNLY AND USEFUL TO THE RAKYAT? I AM SURE YOU HAVE THE TIME AND OF COURSE THE EXPERTS? LET US LISTEN TO YOUR PROPOSAL AND OR AT LEAST SOME SUGGESTIONS TO MAKE IT (BUDGET) ACCEPTABLE BY ALL OF US. WHEN YOU EXPLAINED CLEARLY DURING THE DEBATING OF THE LAST, THE BN GOVT HAS ‘CHANGED’ AND HAD ‘INTRODUCED’ THE ‘ALTERNATIVE BUDGET’! THEY ALSO MANUPULATED WITH THE PETROL PRICING ETC, ETC,….!
BY THE WAY WHERE DO THEY GET THAT HUGE SOME OF MONEY FROM?
THANK YOU.
Reply
As a Banker in telemarketing dept, let me share what had happened to us on the first week after Budget 2010 was announced. It’s like a TSUNAMI!!!!! Cr Card Dept, Portfolio Dept & Anti-Attrition Card Unit was slammed REALLY hard. I can say that customer’s reaction was like being hit by an earthquake…traumatised by the service tax!
I would say government is doing this because it’s the fastest way to cover the losses but it is not a wise decision. To some banks, credit cards are like “bread & butter” in business. Without it, banks will suffer…I can forsee some bankers will end up losing their job as well. AND THAT IS SCARY.
Even during Pak Lah’s era, the Budget is not so STUPID as this. I wonder who is Najib’s “Tuan Penasihat” for this budget…..???!!!
This is my message to that “TUAN PENASIHAT”, PLS DO SOME REVISION!!! DON’T U STUDY ECONOMY IN SCHOOL????
Reply
A lot of complaint is about the credit card charge in this budget. Why must have many cards? I have two credit cards and manage them properly. It’s not wise to have many cards cause you will spend a lot and pay later. The banks actually making profits and squeeze the client through the interest. Your debt will increase over time. Don’t you realize that? You should learn how to manage your wealth. Spend your cash rather than credit and change lifestyle. Of course budget is a short term measurement to boost the nation economy in a year and it is not a policy. A policy will take years. Overall the 2010 budget is good for the people. Well DSAI go back to the basic and study principle of economics, microeconomics and macroeconomics.
Reply