Opposition front Barisan Alternatif (BA) unveiled its 'people friendly' 2006 Budget report yesterday. Among others, it aims to improve the public's purchasing power.

The report was released by PAS secretary-general Kamaruddin Jaafar in Parliament.

One of the recommendations was to impose a freeze on any further increase of petrol and diesel prices, which has been touted as a major cause for inflation as well as increasing the cost of living.

"Petrol subsidy is against free economy market. However, allowing the economy to be battered by inflation would have a far more adverse consequence on the people as compared to the widening budget deficit as a result from the subsidy," he quoted the report, which was divided into four sections - pro-people, pro-business, pro-growth and pro-prudent public finance management.

He said the petrol subsidy is appropriate and should be maintained to curb inflation because the country was a net petrol exporter which profited from fuel price increases.

"... the government must also consider other various forms of subsidy including tax exemption subsidy and the cost incurred by the government to save troubles corporate companies," he added.

He said if the government plans to call off the petrol and diesel subsidy, it must be done in phases parallel with the improvement of the public transportation system and introduction of alternative fuel like biomass and natural gas.

Freeze toll hikes

Other recommendations contained in the 'pro-people section' include a freeze on toll hikes and tariffs for water and electricity.

"The privatisation in the utilities sector has cause the tariff for water and electricity to increase. Considering the rampant disruption of power supply, it is appropriate for the increment of tariffs to be held back until the service improves," read Kamaruddin.

The BA also proposed that car excise duty be slashed by at least 70 percent as owning a car was no longer a luxury but a necessity given the poor public transportation.

"To protect the national car industry, Malaysians are forced to pay more for imported cars. It has been 25 years since the national car industry started and it ought to be able to compete in a free market."

Other recommendations include a minimum RM2,000 or two and a half month bonus for civil servants, abolishment of road tax for vehicles below 1,500cc and better access to education and health services.

Battle corruption

Kamaruddin said there is a need to improve the country's economic competitiveness and eradicate corruption.

To ensure that the Anti-Corruption Agency plays its role as a watchdog effectively, he said it must be supervised by Parliament.

He also noted the lack of innovation and allocation for research and development.

The BA consists of PAS and Parti Keadilan Rakyat (PKR). Since 2000, it has released an 'alternative budget' to pre-empt the government's budget..

Prime Minister Abdullah Ahmad Badawi, who is also finance minister, is scheduled to table his second budget in the Dewan Rakyat tomorrow.