Vote-focused budget will herald hard times’

Santiago says a budget aimed at winning votes will pose problems because it would sacrifice sectors that truly needed funds.

PETALING JAYA: Klang MP Charles Santiago has warned of hard times ahead for Malaysians, saying such will be the inevitable outcome of a national budget aimed at winning votes.

Speaking to FMT, Santiago voiced his fear that Prime Minister Najib Razak would stop at nothing to ensure victory for Barisan Nasional in the coming general election.

He said Najib would not care even if Budget 2018, to be tabled in Parliament tomorrow, turned out to be unsound.

“We’re going to see a people-friendly budget with a sharp focus on so-called gifts for the rakyat,” he said.

“You will likely see BR1M going up and income tax going down. It’s all about winning the votes at this point. So who cares about the country? Just borrow the money and pay back later. That’s the policy.”

Santiago, who is an economist, said a budget aimed at winning votes would pose problems because it would sacrifice sectors that truly needed funds.

“For example, more money needs to go to healthcare, but the government won’t have the money for that because more money will be allocated for BRIM.

“Chances are that healthcare will deteriorate further and inflation will keep going up. So, at the end of the day, there is no net benefit or welfare gain.”

PKR commerce and investment bureau chief Wong Chen also said he foresaw Najib proposing a populist budget, adding that the prime minister would likely make promises he wouldn’t be able to keep.

Wong expects Najib to promise the sky and the earth but doubts whether these promises would be sustainable.

“The national budget should always be about sustainability and prudence,” he said. “And prudence is not one of Najib’s strong points.

“We expect him to promise the sky and the earth. Will these promises be sustainable? I very much doubt it.

“Instead, we can expect the national debt to climb along with contingent liabilities from mega projects.

“My wish for this budget is basic: cut the lavish spending, cut wastage and truly combat corruption. Malaysia’s biggest perennial budgetary problem is the wastage and corruption on the expenditure side.”

There have also been rumours that Budget 2018 will see Najib “zeroising” the goods and services tax. -FMT