Barisan Alternatif presented its 'alternative' budget for 2004 late yesterday and described it as the opposition front's "commitment to enhance the people's living standards".

The budget - unveiled two days before the government's budget - was presented at the Parliament seminar hall by Parti Keadilan Rakyat (Keadilan) president Dr Wan Azizah Wan Ismail.

The key focus of the budget was to create an 'affordable family'. Among the proposals were one-and-half-month bonus for civil servants, the gradual abolishment of tolls and to eradicate road tax for motorcycles under 250cc.

Wan Azizah said four major strategies were identified, namely to increase the number of 'affordable families', generate stable and balance economic growth, increase the nation's revenue and ensure proper financial administration.

Elaborating on 'affordable families', she said the poverty line should be readjusted from the current RM510 to RM3,050 in urban areas and RM2,250 in rural areas for a household of five.

She added that this was based on a survey conducted by the opposition front and the figure was the basic amount required to cover house rental, transportation, utilities, healthcare, food, education and recreation expenses.

Outdated poverty line

The Keadilan president said the current poverty line was "outdated" and the current figure created the impression that poverty was not a serious problem.

"(With the readjustment,) BA's target is that the 'affordable family' rate will stand at 80 percent while the 'non-affordable' family at 20 percent in the year 2020," she explained.

The alternative budget also proposed that to achieve the target of abolishing tolls on highways, the current rates should be reviewed.

She also noted that vehicle prices will decrease when the Asian Free Trade Agreement (Afta) comes into effect in 2005, and along with the toll abolishment, will increase savings for a household of between RM80-RM90 per month.

Free education

As for education, the shadow budget planned to provide compulsory free education until the secondary school level.

Students from 'non-affordable' families will receive subsidies of between RM120 to RM200 when the new academic year commences.

BA also ensured that all schools, including vernacular and religious schools, will receive fair allocations under its budget.

On health, Wan Azizah said the opposition front urged the government to monitor current healthcare cost at public or private hospitals by approving a standard rate for each procedure treatment.

The BA budget also called for the development of a local defence industry where the allocation will focus on human resources for defence expertise.

Reiterating last year's 'alternative' budget, Wan Azizah said a lower corporate tax should be imposed on companies earning less than RM100,000.

"Despite the government reducing the tax to 20 percent last year, we propose that 10 percent tax be imposed on the first profit of RM50,000 and 15 percent on the second RM50,000 profit. This could attract companies to pay their taxes and increase the country's revenue."

The shadow budget also proposed a three percent increase in taxes on alcohol and tobacco products.

No more deficit budgets

"We are of the opinion that 2004 is the best time for the government to present a balanced budget after six consecutive deficit years. Based on a better performance of the corporate sector, the federal government is expected to collect RM93.4 billion.

"(Of this,) the operating expenditure could be controlled for not more than RM70.8 billion. With allocating RM21.2 billion for development expenditure, the government will have a surplus income of RM1.4 billion and this could help reduce the federal government's debt amounting to RM8 billion," she said.

Meanwhile, Keadilan secretary-general Abdul Rahman Othman said the opposition front had held five pre-budget consultations with non-governmental organisations, politicians, businessmen, community leaders and other representatives.

The budget was drafted by a nine-member committee comprising economists and accountants headed by Abdul Rahman and comprised mostly of accountants and economists.

Among those in the committee are Keadilan leaders Lee Sang, Tian Chua, Dr Xavier Jayakumar and PAS leaders Dr Rosli Yaakop and Husam Musa.

The 'alternative' budget is expected to be tabled in Parliament next week by Opposition Leader and PAS president Abdul Hadi Awang.

Prime Minister and Finance Minister Dr Mahathir Mohamad is scheduled to present the government's 2004 budget in Parliament tomorrow.