KUALA LUMPUR, SEPT 24: The target to reduce the budget deficit down to four per cent, as proposed in the budget last year, is not expected to be achieved if the Central Government continues to seek additional allocations.
According to Lembah Pantai MP Nurul Izzah Anwar, these allocations will cause the budget deficit ratio to increase from 4.5 percent to 5.5 percent, compared to Gross Domestic Product (GDP).
“For the last 16 years, Malaysia has been including the budget deficit even before the country’s finances are healthy enough to be proud of with a budget surplus since 1998,” she said at a press conference at the Parliament lobby today.
Within a short span of three months, the Central Government presented a second motion for an additional supply of RM14 billion more to cover their expenses. In July last year, under the 2012 fiscal year, the Central Government found an additional RM13 billion.
This motion is the first additional supply motion for the 2013 fiscal year, as a result of the Federal Government’s penchant for extravagant spending during the first quarter of this year.
The media reported that the Treasury General Services requires a larger increase of more than RM11 billion, while the Treasury Department also requires an additional RM600 million. The Ministry of Education and the Ministry of Health head the list of ministries, needing an increase of RM322 million and RM300 million respectively.
The Treasury is the responsibility of the Finance Minister Datuk Seri Najib Tun Abdul Razak, while the Ministry of Education under the Minister of Education 1 is Tan Sri Muhyiddin Yassin’s. The Ministry of Health is under the Health Minister Datuk Seri S. Subramaniam’s jurisdiction.
“Najib failed again because yesterday was the first motion for additional supplies. After this, there will certainly be more additional motions,” said Nurul Izzah.
She revealed that the additional expenses for 2013 are also likely to cause the public debt ratio to exceed the limit allowed by law. Nurul Izzah believed that this poor achievement will position Malaysia as a country with the highest record deficits in Southeast Asia.
The Prime Minister is recommended to listen and take note of the alternative 2014 budget which will be proposed by the Pakatan Rakyat (PR) before presenting the Federal Government budget in October.