Published September 3, 2008

Anwar promises more responsible Budget

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(KUALA LUMPUR) Opposition leader Anwar Ibrahim yesterday slammed a widening deficit in the government's 2009 Budget that sparked concerns over Malaysia's economic health and vowed to unveil a more responsible Budget if he topples the ruling coalition this month.

Mr Anwar, who was re-elected to Parliament last week, said his plans to seize power from the National Front coalition through parliamentary defections by Sept 16 remains on track.

He said he has held talks with ruling party lawmakers and the response was 'very good' but declined to elaborate.

'If we can form a government within this short period, then a new (2009) Budget will be introduced,' Mr Anwar told reporters. 'We are not proceeding with this irresponsible expansionary Budget.'

Prime Minister Abdullah Ahmad Badawi last Friday unveiled a record RM208 billion (S$87 billion) Budget for 2009, with wide-ranging aid for the poor and higher development spending amid sharply higher inflation.

The fiscal deficit is forecast to balloon to 4.8 per cent of gross domestic product this year and 3.6 per cent in 2009, from 3.2 per cent in 2007.

Mr Anwar said the 4.8 per cent deficit was untenable as there were few measures in the Budget to boost the country's productivity and economic competitiveness.

International credit rating company Standard and Poor's recently downgraded Malaysia's credit rating outlook to the fourth-lowest investment grade, which indicates government mismanagement and excesses, he said.

Mr Anwar said the opposition's budget would focus on wooing foreign investment by dismantling a 37-year-old affirmative action policy which gives privileges in contracts, jobs, business and education to ethnic Malays.

However, he promised affirmative action programmes would be retained to help the poor irrespective of their race.

'Affirmative action policies must continue to help the poor and the marginalised,' he said. 'It will be transparent. It will not be done at the expense of the economy. The Malays will not lose (out); the country will win.'

Mr Anwar also pledged to roll back multi-billion-dollar projects proposed by Mr Abdullah's government to cut the Budget deficit. He promised to cut business taxes and lower fuel prices. -- AP