In the run-up to what will most probably be the last budget before the next general elections, an opposition party expressed concern that the forthcoming budget could record a higher budget deficit.

PKR secretary-general Khalid Ibrahim predicted that government expenditure is likely to increase substantially in preparation for the next general elections, speculated to be called early next year.

"Our worry is on the deficit because the people will have to pay for that," the former corporate figure told reporters at Parliament's lobby today.

"In an election budget, the government will concentrate on spending to attract votes. Thus the amount of spending will most likely be higher this year and next year," he added.

Economists are expecting the government's budget deficit to be contained at between 3.4 percent and 3.6 percent of the gross domestic product (GDP).

The budget deficit for 2007 - the 10th in a row - is estimated at 3.4 percent, which was slightly lower than the 3.5 percent for 2006. The budget deficit was slashed from 5.6 percent in 2002 to 3.8 percent for 2005.

'Distributive justice'

On election goodies, Khalid said he expected the government to announce more welfare assistance for women and senior citizens but did not foresee cuts in taxes.

Prime Minister Abdullah Ahmad Badawi, who is also finance minister, is slated to table the 2008 budget in Parliament on Friday.

During a press conference at the same venue earlier, Khalid and other party leaders wanted the budget to be drawn up based on the concept of 'distributive justice', referring to the distribution of wealth regardless of race but based on needs.

He said PKR will use the Malaysian Economic Agenda advocated by its de facto leader Anwar Ibrahim as a basis to examine whether the government's budget promoted 'distributive justice'.

"The idea is to allow every citizen to enjoy the benefits, not just a selected group of people. Therefore it is now time to accept the Malaysian Economic Agenda," he said.

Previously, the opposition party would unveil its 'alternative budget' before the tabling of the government budget.

It departed from the practice this year as Khalid said the party is "not in the position to do so."

Also present at the press conference were party president Dr Wan Azizah Wan Ismail, vice-president R Sivarasa and treasurer William Leong.