Budget 2014: BN MP says 'no' to BR1M

Pulai parliamentarian Datuk Nur Jazlan Mohamed said, giving out direct payments could become “addictive like sweets” for the rakyat.

“Because when they ask and they get it once, twice, three times… they will demand for it forever,” he said when asked to list down his wishes for 2014 Budget.

He said at the end of the day, the rationalisation of subsidies should supposedly reduce the country’s financial commitments.

“But now what I hear is that these monies are being used to fund BR1M and all these other transfer payments.”

Explaining further, Nur Jazlan said every government expenditure should have a return (of investment).

“You spend on infrastructure and it should yield economic development. This transfer of payment is good for the economy also but also gives very short-term impact.”

He said the rationalisation that is being done should improve the financial situation, as “we need to get our finances in order .”

“The issue today is about borrowing more money. You can borrow more money, compared to the US debt at 100% of the GDP, we are at 53.5% of the GDP, so we are still okay. But do you want to spend your children’s money, the next generation’s money, now?

“There must be some financial prudence exercised in this budget. It might not be popular but better we bite it now.”

Nur Jazlan also said revenue generation resources must be improved, saying the Goods and Services Tax (GST) must be implemented.

However, he urged the government to “start small” with between three and four per cent so that people would be able to get used to it. “Don’t shock the people,” he said.

Meanwhile, PKR’s Kelana Jaya MP Wong Chen shared Nur Jazlan’s sentiments that revenue must grow but disagreed that GST was the way to go.

“GST is an additional tax on people. I don’t think the government is not ready for GST, the timing is just not right. If we set the rate of GST at four per cent, it doesn’t increase. I don’t see how it can work out.”

Wong said the government should instead make more people pay tax.

“We need to push for more empowerment programmes, in the sense that industries need to grow faster. You need to sell more products; we need to be more productive.”

Wong said when companies earn more, they would in turn have more money to pay more tax.

“It’s a revenue problem in Malaysia. There is insufficient revenue to keep up our fiscal position,” he said.

Wong blamed the government’s “inability” to curb corruption.