Pua is the DAP's chief economist. - File pic
KUALA LUMPUR, Oct 7 — The DAP launched its “alternative” Budget today, which outlines what it says will be a more equitable distribution of federal revenue to the various states, if the party takes federal power together with its Pakatan Rakyat (PR) partners.
Besides offering a glimpse of what a PR government's Budget could well be, the DAP's proposals also underscore the party's own frustrations in administrating Penang.
Unlike other states, Penang has a scarcity of land and the state government is unable to collect much revenue, remaining largely dependent on federal aid to fund many of its infrastructure projects.
Similar problems have arisen in other states ruled by PR parties. In Kelantan, the PAS state government is locked in a dispute with the Barisan Nasional (BN) federal government over the payment of oil royalties.
PR parties have accused BN of depriving their administrations revenue as part of a political sabotage.
According to the DAP Budget, the federal government had at its disposal RM200 billion to spent in 2009 while states like Perlis, which is BN ruled, was given a meagre RM200 million and Sabah received just under RM3 billion.
DAP central committee member and chief economist Tony Pua, speaking to The Malaysian Insider yesterday, said its Budget aims to decentralise economic decision-making so that each state can be administered according to their unique needs.
"It doesn't make sense, say, for the decision on public transportation in Batu Pahat to be decided by Kuala Lumpur," said Pua.
"The economy must be decentralised so that the states can make their own decision on the best ways to govern and deliver," said the Petaling Jaya Utara MP.
Decentralisation to DAP will also help increase economic competitiveness and attract more foreign investments as states will be given the freedom to prioritise and identify the sectors that are beneficial to the people.
This can be done through a tax revenue-sharing agreement between the central government and state governments in which it proposes that 20 per cent of individual and corporate income taxes in a state would become the state's entitlement.
Existing negative policies which disallows state governments from raising their own money through loan applications with financial institutions will also be abolished under the DAP Budget.
The sectors which have been recognised by the DAP for capacity building include renewable energy. The party also wants to introduce major reforms in the education system, strengthen small and medium enterprises and develop a public transportation oversight for cities nationwide beginning with the Klang Valley.
The Budget would also look into the buyback of profitable and low-risked major toll concessionaires including the PLUS expressways so that agreements between them and the government can be reviewed.
"(The objective of the Budget) will lead to latent sources of economic growth being unleashed by the country's economy as each state will be able to better exploit their economic potential," concluded the Budget.
Pua said the alternative Budget drafted by his party will soon be submitted to the PR national council for assessment and incorporated and streamlined together with the alternative budgets drafted from other component parties in the bloc.
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