Opposition prepared to back Covid-19 financing bill if doubled to RM90b
The opposition is prepared to support a government bill to facilitate a RM45 billion fiscal injection for Covid-19 economic aid only if the amount is doubled to RM90 billion.
Former finance minister Lim Guan Eng (Harapan-Bagan) said this is because RM45 billion is insufficient to help the affected public and businesses.
The opposition is prepared to support a government bill to facilitate a RM45 billion fiscal injection for Covid-19 economic aid only if the amount is doubled to RM90 billion.
Former finance minister Lim Guan Eng (Harapan-Bagan) said this is because RM45 billion is insufficient to help the affected public and businesses.
"If the allocation can be increased by an extra RM45 billion, we can set aside political interests. The opposition is ready to support this bill 100 percent, on condition there is an extra RM45 billion.
"Let us create history if we want to save our country's economy... (the current) RM45 billion is not enough," he said when debating the Covid-19 financing bill in the Dewan Rakyat today.
A response from the Finance Ministry in Parliament is scheduled for next Monday as there are numerous MPs who still want to debate the bill.
Making his case, Lim said doubling the amount to RM90 billion will not cause a fiscal burden that the government cannot bear.
He said the amount will help stimulate the economy and therefore, the debt to GDP ratio will not exceed 60 percent.
He added that while deficit to GDP will go up to 9 percent, this is still bearable compared to the 16.7 percent deficit the country had in 1982.
Lim said the idea that additional aid can be rolled out next year may prove fatal.
"Why wait until next year? The dead won't live again.
“Companies that have closed won't reopen. Those who have lost jobs, how will they survive until next year?" he asked.
Lim also reiterated his call for the government to extend the loan moratorium - which ends in September - for another six months by injecting RM5.6 billion.
According to him, this will benefit 8 million Malaysians.
The Temporary Measures for Government Financing (Coronavirus Disease 2019 [Covid-19]) Bill 2020 seeks to establish a Covid-19 fund which will cover various stimulus packages such as Prihatin and Penjana.
The Perikatan Nasional government had received flak from opposition lawmakers for failing to allow debate on the economic stimulus packages, announced in stages over the past few months and worth a total of RM295 billion.
Instead, the fundings were pushed through without parliamentary oversight and approval.
However, the bill is also seeking to backdate and validate all related sums paid by the government from Feb 27 in line with the announcement of the first RM20 billion stimulus package by then-interim prime minister Dr Mahatahir Mohamad following the collapse of the Pakatan Harapan regime.
Any sum payable from the fund shall be paid within six months of the expiry of the act, with the balance to be then channelled to a development fund under the Financial Procedure Act 1957.
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