Pakatan says ‘irresponsible’ Budget misses point

Anwar accused the government of tabling a “populist” budget. — Picture by Jack Ooi

KUALA LUMPUR, Oct 15 — Pakatan Rakyat (PR) leaders have slammed Budget 2011, claiming it ignored fundamental economic problems in favour of “goodies” to boost public support. PR de facto leader Datuk Seri Anwar Ibrahim said the Budget announced by Prime Minister Datuk Seri Najib Razak earlier was “irresponsible” as it did not address the country’s budget deficit, waning investor interest and poor governance.
“The (Budget) focus is not the economy or development. They’re just responding [with] a populist but irresponsible Budget,” the former finance minister said.
“We in the opposition... will have to deal with this, focus back the debate on a proper, responsible Budget,” Anwar added.
He cited the planned 100-storey Warisan Merdeka tower as an example of the Najib administration’s misplaced priorities, particularly given the continued lack of transparency in government.
The Permodalan Nasional Bhd (PNB) project, sited adjacent to Stadium Merdeka and Stadium Negara, is expected to cost RM5 billion and will be the tallest tower in Malaysia upon its completion in 2015.
“Our problem is massive, endemic corruption, abuse, which is not addressed,” Anwar said.
“This huge megaproject... is going to benefit the cronies, and there’s no emphasis or categorical statement to assure the public of a new transparent model.”
Proving to be a lightning rod for opposition discontent, the Warisan Merdeka tower also came under fire from DAP secretary-general Lim Guan Eng (pic, left), who said the project sacrificed human capital development for physical infrastructure.
“I think we got enough tall buildings in Malaysia. Why do we need a 100-storey tower called Warisan Merdeka? I would say that this is a waste of resources. It should be used towards encouraging creativity, education,” he said.
“I don’t think it helps us to move forward as a high-income economy. High-income economy is not talking about tall buildings. High-income economy is talking about people who have the energy, the expertise and the entrepreneurship to be able to earn high incomes.”
Lim also pointed out that this “election budget”, which appeared to be full of “goodies” to curry favour with voters, would possibly leave the people worse off.
The Penang chief minister said the toll hike freeze on four highways controlled by PLUS Expressways Bhd would not benefit taxpayers because the government still had to compensate PLUS to do so.
“It doesn’t mean that people are not paying. The government is still paying because you got to pay compensation,” he said.
“So, in effect, it is still the same. The people are not paying directly but the government is paying, and that means that the people lose out on funding.”
The toll-road concession contract stipulates that PLUS is allowed to increase toll rates by 10 per cent every three years, failing which the government would have to compensate them.
Government compensation to PLUS last year amounted to RM850 million. The contract expires in 2038.
“There appears to be goodies, but can we really taste the goodies?” Lim said.