DAP told Prime Minister Muhyiddin Yassin today to withdraw a RM85.5 million allocation to revive the controversial Special Affairs Department (Jasa) if he wishes to present a unity budget.

“DAP calls on the prime minister and the government to immediately commit publicly to withdrawing the allocation to Jasa if the government is sincere about seeking a unity budget,” party secretary-general Lim Guan Eng said in a statement.

Barisan Nasional’s shadowy unit was responsible for putting out glowing literature on scandal-ridden 1Malaysia Development Bhd and is known to maintain a team of “cyber troopers” for online propaganda against the opposition.

The unit was under the purview of the Communications and Multimedia Ministry. It was dismantled in 2018 after Pakatan Harapan came to power.

While it existed, Jasa never received more than an annual allocation of RM23 million – than what PN has allocated for next year.

Yesterday, Finance Minister Tengku Zafrul Tengku Abdul Aziz tabled a RM322.5 billion national budget for next year, upstaging Pakatan Harapan’s 2019 budget with a then record spending of RM314.5 billion.

Budget 2021 was tabled amid a political crisis as the prime minister grappled with the implications of having a wafer-thin majority in parliament.

The spending plan was presented about two weeks after Muhyiddin failed to get consent from the Yang di-Pertuan Agong to invoke emergency laws.

He noted Budget 2021 was filled with unrealistic projections, financial half measures and political handouts so that the 8.6% increase in spending compared to this year’s was not shared by all segments of society.

Lim said for the first time, the country was facing a health, an economic and a political crisis all at the same time.

As well as the threat of Covid-19, Malaysia was grappling with high unemployment and a recession, amid a political situation wherein the government did not command a majority in parliament, he said.

Lim said the budget failed to address the twin crises of a pandemic and an economic downturn but that could be rectified.

“Parliamentary rules provide for the finance minister to represent the government in amending the budget proposal,” he said.

He said while it was possible for the Finance Ministry to achieve the targeted fiscal deficit of 6% to the GDP this year, it was doubtful it could hit the  5.4% fiscal deficit target projected for 2021.

The deficit target for next year was too low given the government’s aim to achieve economic recovery and aid the financially distressed people, and given the declining global trade and economic growth as a result of the latest wave of Covid-19 infections, he said.

He said it was also too early to start fiscal consolidation in 2021.

Lim said Putrajaya should spend more even at the cost of raising the deficit by a further 4%

“These GDP figures were calculated on the basis of the economy contracting by 4.5% in 2020 and growing 6.5-7.5% in 2021, which is overly optimistic.”

Lim also slammed the massive cutbacks on the Health Ministry’s non-Covid spending as well as the insufficient amount set aside for the Covid-19 fund.

He said the RM17 billion allocated to the latter was less than half of the RM38 billion the coronavirus fund received this year.

For expenditures not related to the virus, the Health Ministry is getting RM11.3 billion – 20% less than it did last year. This includes a 74% cut for pharmaceuticals and supplies, he said.

Lim called for more aid to get families and small- and medium-sized enterprises back on their feet in 2021. 

“We take note of some of the measures announced in Budget 2021 which are consistent with the six demands that PH presented to the minister of finance during our budget consultation session on November 1.”

This includes additional resources for the Covid fight, more investments in broadband and internet services for schools, and more financial assistance for SMEs in Sabah,” he added.

Lim said it was regrettable that the federal government had missed the opportunity to draft a true unity budget that fulfilled Pakatan Harapan’s six key recommendations.

This includes expanding the loan moratorium to the M40 group and excluding the T20, creating 600,000 jobs with wage and hiring incentives for employees and employers costing RM13 billion, and increasing monthly welfare payments to RM1,000, including for the unemployed, which will cost the government RM12 billion. 

“If the government is serious about passing a unity budget, further discussion must be held with the opposition parties and backbenchers on alternative proposals and amendments to the Budget 2021 from now until November 25 when a vote at the policy stage will take place in parliament.”

Only a unity budget with the right kind of assistance and support for ordinary Malaysians and Malaysian companies can succeed in overcoming the triple crises of political instability, Covid-19, and economic doldrums, he said. – November 7, 2020.