Subscribe in a reader | Subscribe by Email Update: Some details of the shadow budget is available on Lim Kit Siang’s blog here.
I haven’t read the federal opposition’s shadow budget in full, but only the points mentioned in newspapers. The budget costs RM220 billion and will reduce the deficit to 4.4%. Revenue is RM181 billion, with the expected income from auctions of approved permits (APs), higher oil prices and reintroducing import tax on 200 luxury items that was lifted by federal government last year.
The shadow budget proposed that
– RM22 billion is used for subsidies
– RM5.9 billion to implement minimum wage of RM1100 for civil servants
– reallocate RM10 billion from PM’s department to other ministries.
– an annual allowance of RM1,000 to be given to mothers to encourage them to enter the workforce
– a RM1,000 bonus for senior citizens with annual income of less than RM18,000 as well as for qualified housewives
Other details are not available yet, so I’m not sure how the budget will be provided for. The news in cyberspace so far seem to indicate a less than enthusiastic response, mainly with the proposal to implement minimum wage for civil servants.
I would have proposed that bonus for senior citizens to be RM3600 instead of RM1000, probably in the form of vouchers. The annual allowance of RM1,000 for mothers also too little. I would have proposed to have a compulsory creche/nursery in workplaces or buildings with tax incentive given to those employers who provide such facilities. Also, provide tax incentive to those employers who promote telecommuting. Maybe also encourage employers with more than 500 employees to provide bus free services to their employees to reduce pollution and traffic jams.
I would also propose a big allocation for education to implement single session schooling which can kill many birds with stone.
I would also proposed a gradual reduction in civil service size in line with the international norms, which can help alleviate the salary increment cost. Probably also toss in some privatization exercise to reduce size of civil service.
We have to wait till Friday to see how the federal government’s budget turns out before able to make any comparison.
sources:
http://www.themalaysianinsider.com/malaysia/article/pakatan-budget-cant-rein-in-spending-says-bn/
http://www.thestar.com.my/news/story.asp?file=/2011/10/4/nation/20111004151734&sec=nation
