Budget will be amended to suit BN, says analyst

 

PN’s slim majority will make it tough for Muhyiddin Yassin (left) to ignore Najib Razak’s demands, says socio-political analyst Awang Azman Pawi.

PETALING JAYA: A socio-political analyst has predicted that the Perikatan Nasional (PN) administration will cave in to Barisan Nasional’s (BN) demand for amendments to the budget proposals presented last week.

Awang Azman Pawi of Universiti Malaya said PN’s thin majority in the Dewan Rakyat made it too big a risk for Putrajaya to reject the demand.

Yesterday, former prime minister Najib Razak, in his capacity as chairman of BN’s Backbenchers’ Club, said BN would not support the 2021 national budget if the government refused to extend the moratorium on bank loans by six months and ignored a call for one-off RM10,000 withdrawal from the Employees Provident Fund (EPF).

Awang Azman said PN’s small majority made it difficult for Prime Minister Muhyiddin Yassin’s administration to get the budget passed without the support not only of BN but also Pakatan Harapan (PH).

Awang Azman Pawi.

PH has threatened to reject the budget if the RM85.5 million allocation for the Special Affairs Department (JASA) was not removed.

“If the budget is rejected, the prime minister will have to resign,” he told FMT, adding that this was why PN could not risk having it derailed.

He said BN made a smart move in appointing Najib as chairman of its backbenchers’ club because he could make use of his experience as a former finance minister. “He will get the credit if the government amends the budget.”

Awang Azman also said PN risked losing public support if it rejected BN’s two demands because both represented popular causes.

Jeniri Amir.

Jeniri Amir, a fellow of the National Professors Council, told FMT he did not believe anyone would want to see the budget rejected, but said Najib’s ultimatum had put both PN and Muhyiddin in a “very difficult” spot.

“I think the government’s current proposal of allowing EPF withdrawals of only RM500 a month is aimed at ensuring the sustainability of retirement funds,” he said, adding that Najib, as a former finance minister, would be aware of this but was probably keen on scoring political points on BN’s behalf.

“Still, PN cannot reject the demands outright because it would be too much of a risk. Muhyiddin must now win over BN or find a compromise, which I think will happen.”

Jeniri also said PN should listen to Najib’s call for a reduction of the JASA budget as there was no justification to give the unit so much money. - FMT