MALAYSIA'S MINI BUDGET SHOULD TARGET VIABLE PROJECTS

By Massita Ahmad

KUALA LUMPUR, Feb 13 (Bernama) -- The mini budget, which is scheduled to be
tabled on March 10, should not be money allocated broadly but specifically for
viable projects, according to economist Dr Ramon V. Navaratnam.

"It must also be allocated for projects that meet the basic needs of the
rakyat," he told Bernama after launching the Open Budget Index 2008 by the
Centre for Public Policy Studies (CPPS) here Friday.

Ramon, who is also the CPPS chairman, said the mini budget should not be
necessarily focusing on big infrastructure projects but it would be good if such
projects were vital in areas like transport, health and education.

"But this must be clearly identified and the cost benefit of the projects
clearly outlined so that the public will have confidence that the mini budget is
benefiting them and not a few individuals," he said.

Asked about the allocation for the mini budget, Ramon said that it "should
not so mini but it should be a bit maxi".

"You have the first part (stimulus package) of RM7 billion and now it must
be around RM10 billion," he said.

On whether the suggested amount was enough, Ramon said: "Too much money will
be too much money chasing too few projects and then it will cause bottlenecks,
wastage and corruption."

He said the projects under the mini budget strategy should be given out on
open tenders rather that negotiated tenders as to make the bids more
competitive.

"It is in the interest of the government to ensure that the mini budget is
meaningful to the mass of the people," he added.

On the benefit for businesses, Ramon said the mini budget could help small
and medium enterprises by providing more training and mini projects in rural and
urban poor areas.

"The basis of the mini budget must be income and employment generating so as
to create more jobs and prevent good companies from failing," he said.
-- BERNAMA