KUALA LUMPUR, Nov 9 — Tun Dr Mahathir Mohamad said today he would only support a “realistic” Budget as he did not want to precipitate a crisis should the government fail to raise the necessary money to finance it amid a global pandemic.
Describing the government’s Budget 2021 allocation of RM322.5 billion as mind-boggling, the Langkawi MP questioned where the money would be sourced from as the ongoing Covid-19 pandemic has affected the economy badly leading to shrinkage in government revenue.
He pointed out how two of the government’s biggest revenue contributors — tourism and Petronas — have performed very badly and yet the government needed to offer stimulus packages that cost a lot of money despite recording lowered revenue gains.
“I must admit to being frightened. It is a behemoth of a Budget but can we raise the money to finance it? Government debt will be RM1.3 trillion. How do we pay?
“What is a fact is that most people are not happy. That is shown by their reaction.
“I hope this Budget will be modified in order to become more realistic. Then we can support it. We need not be bribed for our support. We do not want to precipitate a crisis,” he said on his blog chedet.cc today.
With business and industries expected to recover eventually, Dr Mahathir also cited how a 7.5 per cent growth of the Gross Domestic Product (GDP) from a shrinkage of 4 per cent was too “optimistic”, adding that the Covid-19 pandemic would not disappear altogether on January 1, 2021.
This was in reference to Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz’s remark that the government has projected the economy to grow between 6.5 per cent and 7.5 per cent in 2021.
He also claimed that there would be practically no in-flow of investment funds in 2021 as mere approvals would take more than a year, according to complaints obtained from the business community.
“Policies don’t grow economies. Only implementation will do so. I know of cases where multi-billion-ringgit projects have been delayed for years. If the investor pushed, he is likely to face even longer delays.
“So don’t expect restarting or launching new industries to begin on the 1st of January. The rosy picture of immediate recovery once the Covid-19 pandemic is overcome is not going to happen. The pandemic would not end on New Year’s Day,” he said.
Faced with a situation, Dr Mahathir said the government would have to instead opt to borrow in order to implement the budget with government debt estimated to increase further to RM1.3 trillion.
Suggesting the need to prune the operation and development expenditures, Dr Mahathir said it was perhaps time to make ministerial posts and MPs less lucrative with a 10 per cent pay cut as a start.
“In the last 15 years, salaries had been increased at very high rates — as much as 25 per cent each time. Ministers and members of Parliament were given numerous allowances.
“Such is the increase that everyone is keen to be members of Parliament and ministers. Nothing will make them part with their position.
“Even when their leaders commit crimes, they will support them. Giving up their posts would deprive them of so much money. Principles don’t count anymore,” he said.
He described how the pandemic has affected the poor the most while those who are paid highly continued to earn more than their daily needs.
“I think people earning high salaries in the government or private sector should forgo 10 per cent of their salaries. It is a sacrifice but I don’t think it would hurt them if there is a reasonable cut off point, say RM 20,000 per minister,” he said, adding that the money could then be used to provide food to the unemployed and those without income.
