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PETALING JAYA: Former Finance Minister Lim Guan Eng has criticized the 2021 budget, describing it as “ordinary” for “extraordinary” times.
In an interview, the DAP secretary general said the country needed an “extraordinary budget in an extraordinary climate” and this is where, he claimed, the government had fallen short of its RM322.5 billion budget.
He said that Malaysians needed to survive and that the important thing now was to put money in the pockets of the poor, the unemployed and the needy to make sure they could survive and that their children did not go hungry.
“This is a crisis of dire proportions, of unimaginable magnitude, we don’t know what will happen next year,” he said today on BFM Radio’s Breakfast Grille.
Lim said that when it comes to unemployment figures, the budget only takes into account those of the formal sector.
“What about the informal sector? Don’t forget about the Malaysians sneaking through the cracks. We must offer a helping hand. “
He said that many had no money and that was the reason for the demands that people be allowed to withdraw RM10,000 from Account 1 of the Employee Provident Fund (EPF).
The government has said it will allow EPF contributors to make withdrawals of RM500 per month for 12 months.
“It’s a sign that the government has failed when people are asked to use their life savings,” he said, adding that the government should provide more assistance.
This, he said, included the opposition’s proposal for an allocation of RM31.4 billion to extend the automatic loan moratorium to the lowest 40 (B40) and middle 40 (M40) for six months, the continuation of the [email protected] plan to create 600,000 jobs over the next two and a half years and an increase in monthly social assistance of 1,000 ringgit.
Lim also criticized the government’s financial projections for 2021, especially its economic growth and revenue estimates, for being overly optimistic.
The government has projected the economy to grow between 6.5% and 7.5%, but said this was unrealistic as global economic growth would be affected by a third wave of infections.
“We are not sure that we can reach the 2019 levels, much less exceed them. Expecting revenue to be higher than in 2019 is (also) implausible, as many companies are suffering. Many have closed and tourism is stagnant. “
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