Anwar says Budget 2021 may not receive full support unless amended
PARLIAMENT | Opposition leader Anwar Ibrahim said today that it shouldn't be assumed Budget 2021 will receive full support in Parliament if it isn't amended to take better care of the people.
The Port Dickson MP said this in response to the speech delivered by Finance Minister Tengku Zafrul Abdul Aziz on Friday which did not seem to attempt to secure bipartisan support for the budget as it did not incorporate demands made by Pakatan Harapan MPs.
"I would like to stress here, I do not want there to be an easy assumption. The situation now has changed...
PARLIAMENT | Opposition leader Anwar Ibrahim said today that it shouldn't be assumed Budget 2021 will receive full support in Parliament if it isn't amended to take better care of the people.
The Port Dickson MP said this in response to the speech delivered by Finance Minister Tengku Zafrul Abdul Aziz on Friday which did not seem to attempt to secure bipartisan support for the budget as it did not incorporate demands made by Pakatan Harapan MPs.
"I would like to stress here, I do not want there to be an easy assumption. The situation now has changed.
"The government, the finance minister, and prime minister are aware that there is not yet a guarantee that the budget in its current form unless amended to take care of the people as per our (Harapan) demands, will be easily passed," said Anwar in his debate of the Supply Bill (Budget) 2021.
Anwar questioned various projections made in the proposed budget, describing the Finance Ministry's numbers as "unrealistic" and "irresponsible".
He cited the ministry's projected GDP growth of between 8.6 and 9.6 percent next year. This is despite the International Monetary Fund's estimate of 7.8 percent and a World Bank estimate of 5.35 percent average growth.
On the domestic front, Anwar also quoted the central bank's projection of 5.8 percent GDP growth.
"So where does the finance ministry get such high projections?
"Projections are not always accurate, I understand. But it must be realistic... projections must have the drive to state what is right, and not to mislead," said Anwar, who was the finance minister from 1991 to 1998.
Based on the overall lower projections by various financial institutions, Anwar said a more reasonable expected growth could be capped at around 6.5 percent.
Aside from GDP growth, Anwar also questioned Putrajaya's projection on corporate tax collection of RM64.6 billion, which is higher than the RM63.8 billion that was collected during pre-Covid times last year.
The projected figure is also higher than this year's initial estimate of RM59.4 billion corporate tax collection, he said.
With the current situation hitting the industrial sector, with reduced income, business shutdowns, and workers being let go, Anwar said the projected corporate tax collection should be much lower.
"The projected collection for next year of RM64.6 billion is even higher than pre-Covid times," said Anwar who said the figure was unrealistic and an attempt to mislead the people.
"Even if our corporate earnings were to increase in the third quarter of next year, it would still not be able to meet the finance ministry's projection," he added.
He also hit out at a similarly higher projection of personal income tax collection next year, despite the reality of income losses due to Covid-19.
'Not a Covid-19 budget'
Anwar also pointed out the proposed allocations do not match the government's claim that the budget is trying to address Covid-19 and should be supported by all MPs in Parliament.
He called on Zafrul (photo) to explain the source of funds for an RM3 billion allocation to purchase Covid-19 vaccines, as it was currently not reflected in the budget.
"We (the opposition) will only support a Covid-19 budget and nothing else," stressed Anwar in ending his speech.
Zafrul had, prior to the budget, sought to engage with MPs from the government and the opposition bench, in order to seek bilateral support to pass the Budget Bill in Parliament.
The move comes amid attempts to mount a challenge against Prime Minister Muhyiddin Yassin's administration and the latter's failed bid to stall the Parliament sitting through seeking an emergency declaration.
Yang di-Pertuan Agong Sultan Abdullah Sultan Ahmad Shah had since rejected Muhyiddin's request for an emergency and urged MPs to set aside their political differences to ensure the budget is passed.
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