Despite long goodies list, MP points to falling welfare spending

Despite the long list of goodies announced in Finance Minister Tengku Zafrul Abdul Aziz’s Budget 2023 speech today, Subang MP Wong Chen highlighted that the government is actually spending less on welfare and subsidies.

Citing the government’s fiscal outlook for next year, Wong said the government is reducing the budget for subsidies and social assistance from RM58.9 billion this year to RM42 billion next year.

This is a reduction of 28.7 percent, or RM16.9 billion.

“The finance minister has been reading out a long list of goodies and social support for the last hour or so. The government is trying to create a perception that it cares for the people and will be providing a lot of aid, next year.

“This perception is not true!” he said in a Twitter post today.

The RM372.3 billion budget is the largest ever proposed by the government and will be the last one before the next general election is to be held.

Wong (above) panned it as a “budget for the rich”.

“Government tycoons and contractors are probably celebrating. A whopping RM94 billion of government projects are coming in the pipeline next year!

“While they celebrate, our unsustainable national debt will increase by another RM97 bill next year.”

He added that development spending in a typical year is only RM50 to RM60 billion, in contrast to the RM95.1 billion proposed in Budget 2023.

Ordinary M’sian will be poorer

Despite the massive spending, the government’s own forecasts don’t reflect a “trickle-down” effect from the projects.

Instead, income per capita is projected to reduce by 1.2 percent from RM50,314 to RM49,717.

“So after pumping almost RM100 billion in projects, the government forecasts that the ordinary Malaysian will be 1.2 percent poorer in 2023.

“Is this then not a budget that favours the elite and rich, written by a rich elite?” he asked.

Wong also criticised the government for taking RM35 billion from Petronas next year.

He expressed shock at the government’s disclosure that it is taking RM50 billion from Petronas this year, which he claimed was not approved by Parliament.

“The government has constantly said that Malaysia has to wean off revenue dependency on oil and gas. Squeezing RM35 billion from Petronas is not an act of fiscal discipline but the very opposite…

“The hypocrisy for all to see is the fact that the MOF (Finance Ministry) is now championing a Fiscal Responsibility Act,” he said.

Meanwhile, Bayan Baru MP Sim Tze Tzin said the government’s revenue estimate of RM272.6 billion is “super optimistic” and difficult to achieve.

“Will the government impose GST? Or will the government continue to milk Petronas? The revenue projection is super optimistic. Zafrul must show us the money,” he said.

As for subsidies under the Agriculture and Food Industries Ministry, Sim said an RM100 million (six percent) increase is not enough at a time when global animal feed prices have gone up by 200 percent and fertiliser prices have increased by 150 percent.

Sim described Budget 2023 as an “election budget” loaded with “goodies with everyone”.

“If the Parliament is dissolved before it is passed, we expect a newly revised budget will be tabled. That new budget will be a budget of bitter pills,” he said.

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