In my earlier article on the same subject about a week ago, I gave a few examples (Jakim and Permata) on ways to reduce expenditures. This is the second in the series.
For now, I would like to discuss on the budget process and expenditures outside of the original budget. In the earlier article, I did touch on Supplementary Budget which amounts to more than 10 percent of the original budget each year since 2009.
For better understanding, let us take a look at the recent tragedy in Cameron Highlands. Unfortunately, this is the second incident in about a year. After the first incident in 2013, a sum of RM40 million was allocated to prevent future recurrence in Cameron Highlands. Now, the natural resources and environment minister says there is a need for more funds to tackle the situation. The minister also happens to be the member of parliament for Cameron Highlands.
For the record, in 2012 the Works Ministry identified 21,000 landslide-prone areas across Malaysia. It looks like there were no allocations to mitigate or prevent landslides at landslide-prone areas in the yearly original budget. Or, it was proposed but turned down because of other ‘priorities’.
It is a more than RM40 million issue now. In addition, the works minister estimated the damage to federal roads resulted in losses totaling RM8 million. He said the floods were under the responsibility of the Natural Resources and Environment Ministry and several other ministries. To move private riverside land owners would also involve cost as compensation.
The cabinet agreed to form a high-powered committee to study and propose a Restoration Plan for Cameron Highlands including enforcing existing laws to stem rampant land encroachment. The government would also launch an integrated operation involving several enforcement agencies to ensure that the culprits would be taken to justice.
The consequences as shown above calls for more spending. All of the above will be expenditures outside of the original budget.
Some budget proposals may be so strongly driven by the wishes of the executing institution (line ministry or spending agency) that the Finance Ministry may not be well-placed to suggest changes to their spending plans/habits. Without a similar strong push the proposed budget, if any, to mitigate disasters in Cameron Highlands would take a back seat.
The above shows a bit about the budget process I mentioned earlier. The budget should not only embody the country’s strategy for economic development but also social well-being and preservation of the environment. Our government’s current record of putting commercial interests ahead of the environment will not improve the situation.
Yearly, budget dialogue sessions were held with various parties to get inputs/feedbacks. But were there inter-ministry sessions to iron out issues like enforcement as mentioned above or duplication of activities?
Where does the buck stop?
Another interesting point is an admission of lack of manpower and facilities to curb the widespread illegal cultivation. The reason given to justify inaction in a serious case such as this where it not only affects environment but lives, is inexcusable. Moreover, the illegal activities have been happening for around the last 15 years. Where does the buck stop?
For the last 15 years whenever the budget was formulated, has the enforcement manpower requirement been evaluated? Has somebody questioned the effectiveness of its enforcement division and whether any enforcement was carried out? Engaging a few more effective enforcement officers would have been productive whilst saving the millions of taxpayers’ money and preserving the environment.
It is questionable why the budget processes are so ‘fragile’ and enforcement or monitoring actions not effectively done. It should not be merely a compilation of financial requirements for ongoing programmes, new programmes, and projects of the different agencies, but over time should enable the reallocation of resources toward what society needs and to prioritise.
Moving forward, for the 21,000 landslide-prone areas across Malaysia, has a comprehensive study been done and budget proposed to lessen the probabilities of landslide in areas which will have impact on lives and properties? Seventy six percent or about 16,000 of the areas are in peninsular Malaysia, followed by about 3,000 in Sabah and 2000 in Sarawak.
As a matter of fact, why should taxpayers pay for the more than RM40 million bill in Cameron Highlands? The authorities should ask the perpetrators there to pay for it.
Again, the government of the day needs to practice greater fiscal discipline, efficiency, stronger accountability and good governance.
