Impossible to change economy with 2% budget cut, says PKR

 Prime Minister Datuk Seri Najib Razak speaking during a briefing on the revision of the 2015 Budget. PKR strategic director Sim Tze Tzin said the 2% cut of the budget was not enough to transform the country’s economy. – The Malaysian Insider pic by Nazir Sufari, January 20, 2015.

Opposition party PKR today expressed its disappointment at the “hastily assembled” briefing on 2015 Budget revision, saying the cuts to the national budget were insufficient to better the country’s economy.

Its strategic director, Sim Tze Tzin, said the budget cut and the six strategies prescribed by the federal government were too little and too limited to several programmes.

He said Prime Minister Datuk Seri Najib Razak, who is also the finance minister, should have dealt decisively in tackling looming economic crisis.

“His six strategies were limited to several export and SME (small and medium enterprise) sectors. But in reality, the economic challenges are coming from all fronts.

“He missed the opportunity to rally the public to support his 'transformational' agenda. These six new strategies are neither 'transformational' nor 'inspiring',” Sim said in a statement today.

He added that it would have been better if Najib tackled real issues such the rising price of goods, the goods and services tax and corruption.

Najib today announced a RM5.5 billion cut to the 2015 Budget's RM223.4 billion government operating expenditure, which only constituted a 2.2% slash.

The fiscal deficit target of 3% of the Gross Domestic Product (GDP) for the year has also been revised to 3.2%.

Among the strategies Najib announced in the revision were deferring the 2015 National Service programme and reviewing transfers and grants to statutory bodies, government-linked corporations, and government trust funds, particularly those with a steady revenue stream and high reserves.

Najib said Putrajaya would also intensify domestic tourism and postpone the electricity tariff hike, and the gas price hike for the industrial sector which was scheduled this year.

- tmi