While congratulating the Sabah chief minister for tabling a surplus budget, Warisan’s Tanjung Kapor representative Ben Chong pointed out that most states in the country had tabled a deficit state budget.
“The proposed budget looks good on paper but can be quite difficult to implement,” he said in debating the budget at the state legislative assembly.
“Almost all the states in Malaysia tabled deficit budgets which are more realistic considering that the nation is still recovering from the pandemic.”
Chief minister Hajiji Noor had announced that the state government proposed to spend RM4.596 billion, with revenue estimated at RM4.707 billion, resulting in a surplus of RM110.68 million.
Chong said people were suffering and that many traders had been forced to close their businesses while the unemployment rate had gone up drastically. He added that this was compounded by the high cost of living due to the increase in the price of essential products, including food.
“I don’t see a big impact from this budget that can restore the people’s well-being if the government is unable to control prices from continuing to increase,” he said.
Noting that the budget’s theme was economic recovery, he asked how the state expected this to happen if the people did not have purchasing power.
“The government should devise strategies to specifically help those who have lost their means of income, such as fishermen and farmers as well as small-time traders.
“But I hope the government’s target of achieving a surplus of RM110.68 million can be realised although Malaysia is still in pandemic times,” he said.
Sri Tanjong assemblyman Justin Wong, from DAP, backed his opposition colleague, saying the budget had a feel-good factor but was not realistic as the same old policies were being maintained, among other things.
“The government is confident and magnanimous in tabling a surplus budget but many economists say it is in fact more fiscally responsible to propose a deficit budget in the aftermath of Covid-19.
“Our economy is already facing a deficit so that’s why the government needs to spend more. A deficit budget means more money will be channelled into the economy and eventually to the people,” he said.