Budget 2017 is unrealistic as the projected government revenue for next year does take into account of possible slide in oil prices, said PAS.

The federal government projects a revenue of RM219.73 billion in 2017 on the back of higher income tax revenue.

However this may not be realistic as this is based on average crude oil price of US$45 per barrel, US$5 higher than average price in 2016, PAS number two Tuan Ibrahim Tuan Man said.

"Will the revenue projection come true or will it be proven wrong just as in 2016 where it is now expected that revenue will be RM212.6 billion, three percent less than the 2015 revenue of RM219.09 billion?" he asked in a statement.

He said the projection, based on an consistent GDP growth of four to five percent and higher tax compliance is also does not tally with an expected drop in Petronas dividend from RM16 billion in 2016 to RM13 billion next year, and a stagnation of Khazanah Nasional's dividend earnings of RM1 billion, down from RM1.4 bil in 2015.

Currency devaluation is also cutting into profits, he said, raising further doubts over a projected increase in corporate income tax revenue.

Many are also out of jobs due to increasing rates of retrenchment, reducing personal income tax revenue, he said.

"The government's dependency on taxing the people is worrying.

"It also shows the government is out of ideas on how to seek a way out of the economic conundrum we expect to drag on for several years to come," he said.

He said the focus should instead be in attracting foreign investments.

However, with prospects possibly marred by the on-going 1MDB scandal, he said, Malaysians should brace for cuts in their earnings.

"The PM promised there will be no hike in the rate of goods and services tax but in the face of failure to diversify revenue to pay for growing expenditure, the likelihood of GST going up is high if Umno/BN remains in power.

"The rakyat must prepare for this if Umno/BN returns to power in the 14th general election," he said in a statement.