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Monday, April 8, 2013

Annual BR1M cost will balloon to RM11b in public funds, says PKR


PETALING JAYA, April 8 — Barisan Nasional’s (BN) pledge to pay out the People’s 1 Malaysia Aid (BR1M) annually would cost taxpayers as much as RM11 billion a year by 2023, and not solve the woes facing lower-income households, PKR said today.
It added that the pledge to make the popular cash handout a permanent policy also signalled a failure to understand the underlying problems affecting Malaysia’s economy.
“This approach is not that smart because it will lead to big spending without changing the economic structure when this RM7 billion to RM11 billion spent yearly can be used to reduce prices, abolish tolls and reduce car prices,” party strategy director Rafizi Ramli (picture) told reporters here.
Rafizi said estimates show that BN’s aim to increase BR1M to RM1,200 from the current RM500 would cost RM7.2 billion in the first year of its distribution and RM11 billion by 2023.
“It is not going to solve their problems or elevate their economic standing,” said Rafizi in an immediate response to BN’s elections manifesto unveiled on Saturday.
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