Budget 2015: Likes and dislikes

Budget 2015 was announced by Prime Minister Datuk Seri Najib Razak in Parliament this evening.

Here are some of my likes and dislikes regarding Budget 2015, including its targets and allocations.

LIKES:

1.The Prime Minister announced a RM27.6 billion allocation to improve public safety and strengthen national security. Of this amount, RM9.1 billion would go to the police and RM17.7 to the armed forces and RM804 million to the Malaysian Maritime Enforcement Agency.

I have no quarrels here. I hope it will translate into less crime on the streets and a more efficient police force. I hope the proposed intake of 11,757, for instance, will help keep citizens safe.

It is always good to have a well-equipped army. I hope the army will continue to adhere to the highest levels of professionalism.

2.The goods and services tax (GST) is to be implemented next April. It is good to hear that RON95 petrol, diesel and liquefied petroleum gas (LPG) will be among the goods exempted from the GST.

These will join the long list of items, such as bread, noodles, coffee, tea, important medicines, and reading materials, that are exempted from the GST.

3.Najib announced an allocation of RM4.5 billion to provide and upgrade rural facilities and infrastructure. Those in the rural areas should enjoy similar facilities as those in urban areas.

4. In raising the ceiling on household income for those applying for the 1Malaysia People’s Housing Programme (PR1MA) from RM8,000 to RM10,000, Najib said 80,000 houses would be built under this scheme costing some RM1.3 billion.

In tandem with this, there will be a special Youth Housing Scheme for married youths aged between 25 and 40 with a household income of not more than RM10,000. About 20,000 units are to be built under this scheme.

This is great. Many young couples are having difficulty buying houses in urban areas. I hope that these schemes will be needs-based and not follow any quota. I hope, too, that it will not be abused and we will not hear of some rich people with connections getting this aid.

5.It is good to know that the government is emphasising the importance of English by requiring students who aim to enter local public universities to score higher in the Malaysian University English Test (MUET) from next year.
It is important that Malaysian youngsters have an adequate mastery of English in this globalised world.

DISLIKES:

1.The cash hand-outs are continuing. Najib announced that the aid amount under the 1Malaysia’s People’s Aid programme (BR1M) for households earning a monthly income of RM3,000 and below will be raised from RM650 to RM950. Households earning between RM3,000 and RM4,000 a month will now receive RM750, an increase of RM300.

Single people aged 21 and above who earn a monthly income of not more than RM2,000 will get an aid increase of RM50 to RM350 a year.

In all, it will cost RM4.9 billion in taxpayer money. I am afraid this scheme will make people become more dependent on the government. Is that what the government wants? Citizens should be encouraged to stand on their own feet and helped to stand on their own feet, not given crutches.

Also, the cash aid of RM100 and the RM250 book voucher scheme for students continue.

I would like to see the government teach the people to fish rather than give them fish. How long can these hand-outs go on?

2.Najib has been talking so much about innovation, yet he found it sufficient to allocate only RM1.3 billion for innovation and commercialisation programmes.

I hope the government will prioritise the nurturing of young minds to become inventors, innovators and courageous entrepreneurs.

3. The operating expenditure is at RM223.4 billion while the amount allocated for development expenditure is only RM50.5 billion. Isn’t the government serious about cutting down on its operating expenditure? I would have liked to see more money allocated for development and less for operating.

Is the bonus payment of RM500 to civil servants necessary? They are already enjoying better salaries and numerous perks. The bonus is only adding to the operating expenditure.

4. I don’t think the measures announced by Najib to contain price increases after the introduction of the GST are enough. We are going to see price increases in almost everything – you can bet on that. A certain item may be GST-exempt but the materials that go into producing it may not be GST-exempt and this will surely push prices up. And there is bound to be profiteering.

-Rasa Write