Basic essentials for Budget

Published: Saturday October 19, 2013 MYT 12:00:00 AM 

Updated: Saturday October 19, 2013 MYT 7:55:23 AM

THE Budget 2014 to be tabled in Parliament next Friday must be seen by the public to be fair, equitable, reasonable and inclusive, with special preference given to the poor and lower-income groups.

The Government should consider the following basic essentials for the Budget to win broad support for its new policies and programmes.

The Budget has to be prepared as a one-year plan towards fulfilling the Overall Perspective Plan for Vision 2020.

It has to be seen as part of the strategic plan to fulfil our long-term national socio-economic goals.

The Budget should not be viewed or presented as an angpow to get as much more handouts in tax exemptions and expenditure gifts, regardless of the dire implications on the economy.

The Fitch Rating Report’s criticism of our economic weaknesses is real and cannot be ignored when preparing the Budget.

The large budget deficits, rising public debt and balance of payment declines, must be addressed properly, to avoid a downgrading in our International Credit Ratings.

Inflation should be curtailed by introducing tax incentive for increasing competition, production and productivity.

More liberal policies of licensing, quotas and restrictions should be made available to increase supplies of goods and services.

The Budget has to provide more allocations to combat corruption and crime that can raise prices of goods and services for all.

The Goods and Services Tax (GST) should not be postponed again. The essential goods and services that are consumed by the poor should be exempted from the GST.

Corporate taxes should remain the same as any reduction will negate the new revenues from the GST.

The huge wastage of public funds mentioned in the Auditor-General’s Report 2012 have to be drastically reduced and the Budget has to highlight the measures that will be taken to fight wastage.

The Budget should state categorically what measures are being taken and how many officers are being penalised for wasting public funds, otherwise the man-on-the-street will rightly ask, why should we pay our taxes?

Bonuses to civil servants have to be carefully given according to productivity and not given across the board. Bonuses must be earned and not given freely.

The question often on the public’s mind is are we getting our money’s worth? Is the quality of education, health, safety, security, transport, food production and environment improving or regressing?

The Budget must be fair to all Malaysians and not be seen as favouring any vested or racial group.

There should not be race-based economic or “raceconomics”, which could create resentment among most Malaysians and investors.

The Bumiputra Empowerment Policy should be transformed into an Innovation and Entrepreneurial Programme for all deserving Malaysians, with some preference given to genuine needy bumi-putras.

I believe that Budget 2014 has to include the above basic essentials, for it to be regarded generally as a good budget for the people.

TAN SRI RAMON NAVARATNAM

Kuala Lumpur