THE opposition will not back Budget 2021 as questions remain over income projections, Covid-19 allocations and dodgy accounting practices, said Anwar Ibrahim.

“We are asked to support Budget 2021 on the assumption that this will be a Covid-19 budget. In my opinion, we will only support this if it is indeed a Covid-19 budget.

“In its current form, there are too many questions over income projections, Covid-19 allocations and dodgy accounting,” the opposition leader told Parliament today as the first lawmaker to debate the Budget 2021 bill (policy stage).

“I propose for the Finance Minister (Tengku Zafrul Aziz) to look into these issues and prioritise Covid-19. We have been pressured and urged to support this bill but we will only do so if it is a Covid-19 budget,” said the Pakatan Harapan chairman.

The Muhyiddin Yassin government, which only has 113 MPs backing it, is hoping that the opposition backs its first federal budget as it still has unresolved issues with its ally Barisan Nasional.

‘Misleading’ budget

In his 90-minute speech, Anwar highlighted three points why Budget 2021 was “an ordinary budget under extraordinary times”.

“In fact, I would say it’s a misleading budget,” said the former finance minister.

He said that although the Science, Technology and Innovation Ministry has said the government is providing RM3 billion to obtain Covid-19 vaccines, the sum could not be found in Budget 2021 notes.

“The RM3 billion is higher than the original RM1.3 billion allocation. But where is this in the budget?”

Anwar also questioned the government on why it was reclassifying the Health Ministry’s operating expenditure as development expenditure.

In a departure from previous federal budgets, Finance Minister Tengku Zafrul Abdul Aziz had reclassified RM4.29 billion (allocated for medical supplies and consumables) under “Specific Programmes” in Budget 2021.

He said that the sum included government supply of public medical facilities of RM2.89 billion and medicinal and laboratory supplies of RM1.4 billion.

“This is why the total allocation under code 020000 (Medical) shows a ‘reduction’ from RM14.2 billion (2020) to RM11.3 billion (2021),” said Zafrul.

But opposition MPs and health professionals have questioned the rationale of “reclassifying” the annual expenditure.  

“Is the government trying to hide these expenses under procurement so that it can purchase items through tender? Will it be done by direct negotiations or will there be a transparent tender process?” said Anwar.

Cuts for LKIM, boost for fishermen 

While the government celebrated giving more allowances to fishermen, they cut RM37.6 million from the Fisheries Development Authority (LKIM), Anwar said.

“Who is going to help the fisherman develop the infrastructure they need?” 

He said this was the same for agriculture, where the government announced a RM50 increase in allowances for padi farmers but cut RM50 million for padi subsidies. 

However, amid these cuts, said Anwar, the government is reviving a government propaganda unit, the Special Affairs Department (Jasa), with an allocation of RM85 million.

“It also decided to give RM8.6 million to Penggerak Komuniti Negara, which comes under Housing and Local Government Minister Zuraida Kamaruddin,” said Anwar.

“Penggerak Komuniti is nothing more than a political arm set up by the minister for political purposes. Maybe, Tengku Zafrul did not know this as he is not a politician.

“But he has to face the questions now as he is the finance minister.”

Instead of allocating more than RM90 million to political units such as Jasa and Penggerak Komuniti, the government should give the money to Covid-19 frontliners, said Anwar.

Anwar also questioned Tengku Zafrul’s GDP forecasts of 8.6%-9.6% when other agencies had forecast an average of 6.5%.

“Is the government trying to make its deficit look lower by overestimating the income?”

Anwar said because of Budget 2021’s inconsistencies, the opposition could not fully support it unless was revised. – November 9, 2020.