Opposition Leader Abdul Hadi Awang (PAS-Marang) tabled the Barisan Alternatif budget in the Dewan Rakyat today without protest from the speaker or government backbenchers.

Claiming the opposition's right to present its ideas in Parliament, Abdul Hadi said the Bajet 2003 tabled by Prime Minister and Finance Minister Dr Mahathir Mohamad last Friday was merely "an estimation and suggestion as it is only one of the aspects of the country's planning".

"Therefore, we in the Barisan Alternatif also have the right to draft our own budget," he said while debating the government's Budget 2003 proposals.

Mahathir had outlined in 79 pages, measures to further reduce the cost of doing business to enhance the country's competitiveness.

However, the BA had stolen a little of that limelight on Sept 17 when it 'presented' its strategy in the Parliament's meeting room. It was read out by Universiti Malaya economic professor Dr KS Jomo.

Three approaches

Abdul Hadi, who is also acting Pas president and Terengganu Menteri Besar, was interrupted briefly by Deputy Speaker Mohamad Abdullah who observed that two different budgets had never been 'tabled' in the Dewan Rakyat before.

"But if you merely want to state your opinion, you can go ahead," Mohamad said.

Abdul Hadi said the BA had drafted its 2003 budget based on the country's financial situation based on the 2002 income and 2003 expected income.

"We also looked at the economic growth brought about by higher taxes to support incentives and new subsidies," he said.

Abdul Hadi said the BA's financial management strategy was to "save, introduce new fiscal policies to lower deficits and earn maximum returns from public funded investments".

He added that the opposition's 2003 budget had three approaches, namely, "for the people, business community and re-prioritise (spending)".

Estimating next year's earnings to be around RM90 billion, Abdul Hadi said the government's finances could be managed prudently to avoid debts.

Lower-cost development

He proposed four ways to increase earnings, such as by imposing higher sales tax (one percent) and service tax (five percent).

But exceptions should be made for basic needs like food, clothing for children, education, medicine, water, electricity and transportation to benefit the lower income group, he said.

"We believe there is a possibility of cutting the government's operational costs by five percent by practising a more efficient purchasing management style and through better resource utilisation," said Abdul Hadi.

He claimed there was mismanagement and wastage in development projects implemented by the Barisan Nasional.

In comparison, "BA will still bring about development for the people but this will be done with lower development costs (10 percent)," he said.

He said maximum returns must be sought from public funded companies where the shareholders are the people and the government.

"We plan to increase dividends for companies (and institutions) like Petronas, Tenaga Nasional, Telekom and Bank Negara," he said.

The government's Budget 2003 concentrates on efforts to stimulate domestic business and industrial activities to generate higher economic growth.

Mahathir did not increase taxes or introduce new ones. However, to ensure that the government would have adequate financial resources to finance its expenditure, efforts are to be intensified to enhance tax compliance.

The premier proposed that the corporate tax for small- and medium-size industries with paid-up capital of RM2.5 million and below be reduced from 28 percent to 20 percent on chargeable income up to RM100,000.

Civil servants also had cause to cheer following Mahathir's announcement that they would receive a one-month bonus or a minimum of RM1,200.