Budget 2019 a fiscal correction budget, says rep

KUCHING: The Nat iona l Budget 2019 can be seen as a fiscal correction budget, the new PH government’s effort in steering the fiscal management direction to the correct path, says Padungan assemblyman Wong King Wei.

He said the federal government has taken into account that the nation needs at least three years to stabilise its fiscal health after becoming indebted internally and internationally.

“I believe with such fiscal correction exercises in the new Budget, the country’s economy will be back on track in the coming years,” said Wong, who is also DAP Sarawak publicity secretary when contacted yesterday.

Malaysia is like an ‘ indebted man who is no longer capable of buying any more assets, but only to clear his debts.

He added that even RM30 billion- dividend from Petronas would be used to repay part of the GST refund of RM37 billion.

The government has shown its political will in setting the correct foundation for the future by managing the debt, including debts created by the former government through the 1MDB.

“The government has also decided to table the ‘ Fiscal Responsibi lity Act ’ in 2021, and the setting- up of the ‘ Debt Management Office’ as efforts to ensure mega debts will not be created by the government in the future,” he added.

The government has also decided to stop paying the RM4.32 billion in debt from the 1MDB, and instead would demand for a repayment of RM1.46 billion to the country.

Minister of Finance Lim Guan Eng has set a gradual and planned deficit reduction during the budget announcement, to ensure the country will spend according to its means.

The target is to reduce the 3.7 per cent deficit this year, to 3.4 per cent in 2019, 3 per cent in 2020 and 2.8 per cent in 2021.

On another note, Wong said the government would also table the Government Procurement Act in 2019 to ensure all government procurements are done in a transparent manner.

“We all know that the cause of inefficiency in national fiscal management all these years is due to wastage and corruption, which have resulted in the country’s revenue to go to the leaders and not the people.”

The Acts he added would ensure transparancy and elimination of corruption as is proven in the declaration of assets by PH ministers and MPs, and that any unusual income detected would trigger an investigation.

Other aspects of the budget is the federal government’s effort to concentrate on helping the needy and to increase tax for the rich, in order ‘ to balance the social economy and the building of a welfare state’, he added.