WHILE farmers and fishermen complained that Budget 2019 offered nothing for them, analysts have called it an expansionary budget aimed at addressing income inequality.

They focused on the raft of measures aimed at the B40 group, highlighting the announcements on healthcare insurance, increased minimum wage and targeted subsidies for petrol and electricity.

“This budget serves a variety of stakeholders, particularly the B40 group. The announcements, such as healthcare insurance and minimum wage, are good strategies to cushion the financial pressure for them.

“The budget also acknowledges the income inequality in the system. Announcements on the RPGT (real property gains tax) will help address the inequality,” said Klang MP Charles Santiago, who is a trained economist.

He said it was a bold budget as it ensured adequate allocation for development.

Finance Minister Lim Guan Eng yesterday announced a RM314.5 billion budget of which RM259.8 billion is for operational expenditure and RM54.7 billion for development expenditure. The total is higher than the RM290.4 billion expenditure under the Barisan Nasional budget for 2018.

But Santiago cautioned that the measures will not last if there is no cohesion between the delivery of these measures and training to uplift the B40 group in a sustainable manner.

“The government needs to ensure that skills and entrepreneur training reach the targeted groups so that they can climb out of the B40 group to the M40,” said Santiago.

ISEAS-Yusof Ishak Institute researcher Dr Lee Hwok Aun said Budget 2019 has managed to distinguish the administration from its predecessors by introducing new programmes while tweaking existing ones.

“A few initiatives providing access to health services and promoting healthier living are novel and welcome. Scaling BSH (Bantuan Sara Hidup) to household size is also a sensible move, retaining a popular and progressive instrument with enhancement. 

“Raising the minimum wage to RM1,100 also shows the government’s response to public condemnation of the paltry raise announced in September. 

“However, I hope this does not set a precedent. The budget is not the forum for setting the minimum wage. The jurisdiction and authority of the National Wages Consultative Council should be respected.

“In fact, the NWCC recommended an even higher minimum wage of RM1,170,” said the former Universiti Malaya economics lecturer.

International Islamic University Malaysia’s Prof Dr Tunku Mohar Tunku Mohd Mokhtar also focused on the items for the B40 category.

“The provision of Bantuan Sara Hidup to groups earning less than RM4,000 takes into account income levels and also family size. Although it may be said that the contribution is low, it could definitely help these groups to ease their financial burdens.

“The subsidies for RON95 targeted at owners of cars below 1,500cc and motorcycles below 125cc are also good moves to ease the burden of low-income Malaysians. 

“There is still concern that the floating of petrol prices may affect prices of goods and this is something that the government needs to address.”

The extension of subsidies for electricity from bills below RM20 to RM40 will also help the low-income groups.

Tunku Mohar said the higher allocation to the education and health sectors reflects concerns of Malaysians.

“While not all of the promises made in the manifesto could be fulfilled, but the efforts seem to suggest that the government is responsive to the people’s needs.

“It does not give too much direct handouts, but there are a lot of efforts targeted at ensuring the well-being and quality of life of the B40,” said the political science lecturer. – November 3, 2018.