Dzulkefly said allocations and spending for the health sector would be maintained. He disputed a statement by a policy centre forecasting government cuts in social spending because of a shortfall in revenue after SST is in force.
“To me, that view isn’t backed by clear evidence, just a forecast which isn’t based on information but on the assumption that the SST will affect the elderly,” he said.
Spending on the health sector would not be decreased because it is given priority.
Yesterday, the Galen Centre for Health and Social Policy said lower revenue from SST compared to the Goods and Services Tax might force the government to cut back on spending on social support, resulting in the elderly population becoming even more vulnerable.
SST is scheduled to come into effect on Sept 1, in place of GST which will be abolished. Revenue figures quoted by the government suggest SST collection might only amount for about half that of the GST.
Dzulkefly said the annual allocation for the health sector did not only benefit the elderly but also those in the lower income group.
“When we spend wisely, effectively and avoid wastage, the people will feel the spillover effects. That’s why I say such remarks are baseless,” he told reporters while on a constituency visit. Dzulkefly is MP for Kuala Selangor.