— Lim Guan Eng
The Malaysian Insider
Sep 30, 2012
SEPT 30 — Even though many goodies where announced during yesterday’s Budget 2013 speech by Prime Minister Najib Tun Razak, this budget has failed the Malaysian people by not addressing three crucial areas which are necessary to guarantee the long term well-being of our country and its people — namely fiscal prudence, economic sustainability and cost of living increases.
Firstly, even though the budget deficit is projected to come down from 4.5 per cent in 2012 to a ‘mere’ 4.0 per cent in 2013, this figure masks the poor track record of the BN government in sticking to its spending plans.
For example, total expenditure for Budget 2012 was announced at RM232.8 billion in last’s year’s budget speech. But in this year’s Economic Report 2012 / 2013, total expenditure for 2012 is projected to total up to RM252.4b.
This is almost RM20b more than the projected expenditure announced last year. We were fortunate that projected revenue is expected to be RM207 billion for 2012, RM20 billion more than the RM186.9 bilion projected revenue announced last year. Without this tax ‘windfall’, our budget deficit would have ballooned up to 6.7 per cent of GDP rather than the projected 4.5 per cent for 2012.
But we cannot expect that actual revenue will continue to exceed projected revenue especially given the slowing global economy. Furthermore revenue from oil related tax revenue is likely to decrease given the change in the dividend policy of Petronas as well as political uncertainty in Southern Sudan which could decrease Petronas’s bottom line by as much as US1 billion. Continue reading “The Budget 2013”