Explain please: RM750m subsidy cuts vs RM934m Raya payout

Now let’s get this straight! Prime Minister Najib Tun Razak is spending RM934.65 million with his “keeping up with the Jones” decision to give all civil servants a RM500 festive bonus. But Najib was also the same person who, a few months back, cut subsidies on fuel and everyday necessities in order to save the government RM750 million. This sparked a price rise of consumer essentials.

“I think every civil servant should question Najib’s rationale…,” said Shah Alam MP Khalid Samad.

"His decision is not in sync with rationalisation of subsidies. They (government) cut subsidies on five basic commodities worth RM750 million to reduce the burden on the government.

“I am not disputing the RM500 gift. I support the decision to give the rakyat bonuses, but what is Najib’s rationale for cutting back on subsidies worth RM750 million and spending RM900 million on bonuses?” he asked.

Reiterating his support for bonuses to be paid to civil servants on the low- and medium-salary scale, he said Najib’s decision smelt of politics.

“Was the bonus offer made to match Penang’s gesture to its government employees?” he asked, referring to Chief Minister Lim Guan Eng’s announcement that all state government staff would be given a special RM500 allowance for Hari Raya.

Khalid said Najib's decision to give bonuses to civil servants was different from the moves made by Penang and Selangor.

"Penang and Selangor can afford to give away bonuses to their staff because the state administrations are well managed and the government is frugal.

"But it's different with the federal government. The federal government has itself admitted to deficits as a result of corruption and wastage.

“He (Najib) has himself said that the subsidy scheme was not efficient; now suddenly he has money to pay bonuses,” he said.

courtesy of FMT