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| While the recently unveiled 2014 Budget provides numerous benefits for the people, the opposition’s alternative budget is not as inclusive as it is claims to be. |
THE 2014 Budget has
finally been unveiled. The uncertain period is now over. Businesses and
ordinary folk can now firm up their economic decisions for the coming year
after a long period of taking a wait-and-see approach.
Supporters have begun
singing their praises and detractors have started lashing out.
We have also heard
talk of the shadow budget from the other side of the political divide. Although
the elections are over, a responsible rakyat should take some time to read,
analyse and evaluate both documents, for the simple reason that pre-election
budgets would give a distorted view of the respective parties' actual economic
standpoints.
Post-election
budgets, on the other hand, are more realistic, less populist, and less
rhetorical. And indeed, they were, although this is true for the official more
than the shadow budget.
Although the opposing
sides seem to never see eye-to-eye with each other on almost every issue, it is
worth noting that both budgets for the coming year have similar objectives.
Both seek to exercise
greater fiscal discipline, achieve higher and more equitable economic growth
and address the higher cost of living. The difference lies in the specifics, as
well as in how much emphasis is given to each objective.
Scrutinising the two
budgets revealed that the shadow budget, or what Pakatan calls the alternative
budget, still has a long way to go to become a real alternative.
Most glaringly
because it is not as inclusive as it is claimed to be. While the alternative
budget deserves two thumbs-ups for addressing the pressing issues of fiscal
responsibility and cost of living, its failure to propose pro-growth and
pro-business measures has to be given a double thumbs-down.
Double because the
same criticism has been hurled towards last year's alternative budget, and
again towards Pakatan's election manifesto.
Achieving economic
prosperity is an endeavour that reaches beyond real income growth, which does
include fiscal responsibility and economic equity. But in our eagerness to
achieve growth sustainability and inclusiveness, the core concept of real
economic growth must not be forgotten. After all, there is little to boast
about being able to equally distribute a slow-growing, constant, or worst, a
shrinking economic pie.
In a challenging
global economic environment such as now, competitiveness and productivity are
key.
A responsible budget
should address, not only the rakyat or the household sector, but also the
business community and the private sector, as it is ultimately the engine of
economic growth. Ignoring this important section of the economy would certainly
be an injustice.
In this regard, the
official budget seems well-prepared, as usual. Various specific fiscal and
non-fiscal measures have been announced to spur growth in the private sector.
It includes various
tax incentives for oil and gas, tourism, financial and capital market sectors
and encourages commercialisation of research and development findings and
venture capital. Various funds have also been set up to promote small and
medium industries , the agriculture sector and intellectual property rights,
among others.
In contrast, the
alternative budget offers only three pages (out of the overall 37-page
document) of scanty and vague measures that would supposedly promote
innovation, creativity, value creation and entrepreneurship.
Among others, it
proposed funds to facilitate the implementation of the minimum wage policy, to
strengthen the copyright industry and to promote commercialisation of
inventions, all of which are praiseworthy and deserve credit.
Unfortunately, the
remaining proposals lack specifics, such as their promise to "undertake
economic, structural, institutional, political, social and law reforms to raise
Malaysia's long-term underlying growth trend competitiveness" and to
"constantly look for ways to lower the costs of doing business".
For a
"responsible government-in-waiting" that can proudly count in their
ranks a former finance minister, a former corporate leader and countless other
capable people, the excuse that it lacks the government machinery to come up
with a well-prepared budget is hard to square.
It has already gained
control over the two most developed and industrious states in the country and
therefore, would have the means to engage the business sector.
It has also held
countless pre-budget meetings and events, so, surely, there must have been
avenues for the business sector to voice its wishes. Not to mention it would be
a gross understatement and insult of these people's capability.
Looks like I will
have to wait for another year, if not longer, to see a real alternative budget.
By : Mazlena Mazlan
Read more: Left in the dark on shadow budget - Columnist - New Straits Times http://www.nst.com.my/opinion/columnist/left-in-the-dark-on-shadow-budget-1.392232#ixzz2jvPRzP2I
