ID :
146226
Sat, 10/16/2010 - 20:37
Auther :
Shortlink :
https://oananews.org//node/146226
The shortlink copeid
IT'S NOT AN ELECTION BUDGET
By Alan Ting
KUALA LUMPUR, Oct 16 (Bernama) -- Just a few days before the 2011 Budget was
tabled by Prime Minister and Finance Minister Najib Tun Razak, there
was intense speculation that it could be an election budget.
The postponement for the second time of the Goods and Services Tax had
intensified speculation as analysts were looking for more clues such as the
possibility of a reduction in income tax, increase in sin tax and one month
bonus for civil servants.
However, when it was tabled with some tax cuts, they believe that it is
still far from an election budget as the entire national budget is merely moving
towards improving the wages of the lower income group, largely below the
RM3,000 (US$1=RM3.08) income bracket, and the government delivery system in line
with the desire to turn the country into a high-income economy.
"If you ask me whether this is an election budget or not, I will say
it is not. The other vital ingredients for an election budget are missing," said
economist and former Human Resource Minister Dr Fong Chan Onn.
Fong, the former dean of the Economics Faculty of Universiti Malaya, said
the budget was actually very much moving towards improving the government
delivery system in order to be a high-income nation.
"If you look carefully, the increase in the service tax from five to six
per cent is to prepare for the GST implementation, probably at four per cent in
the near future. So, the notion that postponing the GST Bill was a sign that the
election would be near does not hold water," he said.
As for the Opposition, they still argue that the 2011 Budget is an election
budget as they claim the government has included several election measures
such as allocating RM500 million for Class F contractors, raising the monthly
allowance for Village Security and Development Committee chairmen, and increased
spending for the supply and services sectors.
"I still believe that it is an election budget. It looks like they (BN
government) are preparing for the general election," said DAP member of
parliament for Petaling Jaya Utara, Tony Pua.
His view is shared by political analyst Prof James Chin at Monash
University in Malaysia.
"The last time, the civil servants didn't get much and this time, the prime
minister gave an incentive of RM500 to tide over the additional burden of school
uniforms and books for those with schoolgoing children," he said.
To political analyst Dr Sivamurugan Pandian, the 2011 Budget is not an
election budget as it is more a move by the prime minister for a balance between
human capital development and infrastructure development.
"This could be the first step towards the elections, but it's not an
election budget," said the Universiti Science of Malaysia lecturer.
"The way I look at it, the prime minister is actually focusing on a budget
that can help him get the end results of the Government Transformation Plan and
Economic Tranformation Plan," he said.
-- BERNAMA
KUALA LUMPUR, Oct 16 (Bernama) -- Just a few days before the 2011 Budget was
tabled by Prime Minister and Finance Minister Najib Tun Razak, there
was intense speculation that it could be an election budget.
The postponement for the second time of the Goods and Services Tax had
intensified speculation as analysts were looking for more clues such as the
possibility of a reduction in income tax, increase in sin tax and one month
bonus for civil servants.
However, when it was tabled with some tax cuts, they believe that it is
still far from an election budget as the entire national budget is merely moving
towards improving the wages of the lower income group, largely below the
RM3,000 (US$1=RM3.08) income bracket, and the government delivery system in line
with the desire to turn the country into a high-income economy.
"If you ask me whether this is an election budget or not, I will say
it is not. The other vital ingredients for an election budget are missing," said
economist and former Human Resource Minister Dr Fong Chan Onn.
Fong, the former dean of the Economics Faculty of Universiti Malaya, said
the budget was actually very much moving towards improving the government
delivery system in order to be a high-income nation.
"If you look carefully, the increase in the service tax from five to six
per cent is to prepare for the GST implementation, probably at four per cent in
the near future. So, the notion that postponing the GST Bill was a sign that the
election would be near does not hold water," he said.
As for the Opposition, they still argue that the 2011 Budget is an election
budget as they claim the government has included several election measures
such as allocating RM500 million for Class F contractors, raising the monthly
allowance for Village Security and Development Committee chairmen, and increased
spending for the supply and services sectors.
"I still believe that it is an election budget. It looks like they (BN
government) are preparing for the general election," said DAP member of
parliament for Petaling Jaya Utara, Tony Pua.
His view is shared by political analyst Prof James Chin at Monash
University in Malaysia.
"The last time, the civil servants didn't get much and this time, the prime
minister gave an incentive of RM500 to tide over the additional burden of school
uniforms and books for those with schoolgoing children," he said.
To political analyst Dr Sivamurugan Pandian, the 2011 Budget is not an
election budget as it is more a move by the prime minister for a balance between
human capital development and infrastructure development.
"This could be the first step towards the elections, but it's not an
election budget," said the Universiti Science of Malaysia lecturer.
"The way I look at it, the prime minister is actually focusing on a budget
that can help him get the end results of the Government Transformation Plan and
Economic Tranformation Plan," he said.
-- BERNAMA
