Liew Chin Tong on the Malaysian 2011 Budget
October 21, 2010
National Budget 2011: The Malaysian Treasury does a shoddy job
by Liew Chin Tong
Finance Minister Dato’ Seri Najib Tun Razak and the Treasury should be censured for misleading the Parliament with its shoddy preparation of a budget document that shows a RM 30 billion hole that wasn’t, as well as an attempt to hide a RM 2 billion figure from the public.
On page 41 of Anggaran Perbelanjaan Persekutuan 2011 (http://www.treasury.gov.my/pdf/bajet) the Peruntukan Asal Tahun 2010 (original allocation) column shows that the total budget allocated for 2010 was RM 221 billion (RM221, 585, 772,800) which includes an operating budget of RM 168 billion (RM168, 366, 115, 800).
The Anggaran Perbelanjaan Persekutuan 2010 allocated a total of RM 191 billion (RM 191, 498, 805, 000) which includes an operating budget of RM 138 billion (RM 138, 279, 148, 000). If these figures are correct, this would mean there exists a RM 30 billion hole and a 16 percent “overspend”.
Scrutinising each line I have found that the figures in the 2011 document are not accurate. There was no change in the original allocation amount, although according to the Economic Report 2010/2011, the 2010 budget was 7 percent overspent and now stands at RM 205 billion, as opposed to the original RM 191 billion.
Anggaran Perbelanjaan Persekutuan is the actual budget document to be approved by the Parliament, legally binding, as opposed to the Finance Minister’s budget speech in Parliament, which is essentially an exercise in public relations.
The Treasury must own up to the unacceptable, albeit technical, mistake, failing which the entire budgetary process in Parliament is rendered meaningless. The Finance Minister must apologise to the Parliament and request an amendment to the document.
The Finance Minister should also apologise to the Parliament for his ostrich-like act to hide a RM 2 billion figure from the public in his budget speech to the Parliament on Friday, October 15, 2010. The Finance Minister announced in the Parliament (paragraph 113) that the total allocation for Budget 2011 is RM212 billion, which, according to him, is 2.8% higher than the allocation for 2010. Both figures are wrong!
First, for all preceding years before this budget, the allocation for “simpanan luar jangka” (emergency reserve) is considered part of the global figure. For 2011, RM 2 billion is allocated for that purpose which the Finance Minister is attempting to hide from the public. The actual total is RM 213,987,217, 000 or RM 214 billion.
Second, RM 214 billion is a huge increase from the RM 191 billion originally allocated for 2010. It is a 12 percent increase. For the sake of preserving the integrity of the budget processes and the sanctity of the Parliament, I call on the Finance Minister and the Treasury to correct their mistakes.
It is unfortunate that the Prime Minister cum Finance Minister must take responsibility when civil servants in the Malaysian Treasury fail to do a thorough and professional job, in this case those in the Budget Division.The Secretary-General to the Treasury should be asked to appear before the Public Accounts Committee (PAC) to explain why these technical errors had occurred and assure the committee that such errors will not be repeated.
The integrity of our national budgetary system and processes must be safeguarded. This never happened when Tun Tan Siew Sin and Tengku Razaleigh, Tun Daim and Tun Dr. Mahathir when they were Ministers of Finance because they were supported by outstanding Treasury Secretary-Generals and their staff. –Din Merican
dinobeano - October 22, 2010 at 7:48 am
You are right Pak Din sir. This is totally unacceptable. How are we to become a developed nation if these stupid mistakes were not picked up & rectified before the budget was presented and accepted. PM should sack the leaders at MOF to show he mean business (although we know this would not happen). Salam to you and your family sir.
___________
Abdullah, in my time ( I was in Bank Negara in 1960s and 1970s), the Treasury was full of star civil servants; they were professional in the way they performed their duties. You can see now what happened to the civil service since then. The tidak apa and agak-agak attitude is prevalent today.–Din Merican
Abdullah Ismail - October 22, 2010 at 9:34 am
Whoever those analysts who said PR does not have experience to run this nation.
PLEASE EAT YOUR WORDS.
I do not believe this to be a mistake.
PRwillWIN - October 22, 2010 at 11:23 am
“PLEASE EAT YOUR WORDS”
Why? Idiots come in many forms. Some in numerology, others by sleight of hand, yet others who compromise on integrity and social responsibility due to self imposed agendas. “Experience in governing” means the ability to work with care, dedication, awareness and honesty which are sorely lacking by politicians of all stripes, colours and hues. True Governance should not be just blaise criticisms nor a Business venture where the winner takes all. The worst people to ‘govern’, are the NGO types. Their acronym says all. They will be “menyalak-ing” – but unlike me, will be exposing their nether parts for all to nauseate at.
Experience in governing also means that they must know how the arcane laws of civil service work. The opposition, with very few notable exceptions, are totally oblivious to this. That’s why we have diplomas (Bachelors and Masters) in Public Admin in addition to Business. Ask Havard and Cambridge, or even our mouldy UM, if you don’t believe me.. The Opposition needs those who have worked within the system, so that they don’t fumble and stumble as they are doing now.
Yup Din, it’s remarkable how far they fallen! They no longer have due process and negative feedback loops. Yet, they hire all these consultants who are supposed to project and protect. They can’t even add nowadays – much less do exponential functions. Hogwash!
Menyalak-er - October 22, 2010 at 1:40 pm
These so-called “experts” are so laid back and unconcerned. They are the cari makan type who careless for accuracy and, worst, integrity. They know they’ll not be censured in spite of the all-too-glaring mistakes. It’s ingrained in the system.
I marvel the way the UK budget was announced and debated. Imagine almost 500,000 civil servants will be out of job come 2011. Hope this will not happen here.
If it happens, Jibby is good at making figures disappear and reappear. And when the figures reappear they will be in Fat Mama’s kitty.
Tok Cik - October 22, 2010 at 2:28 pm
Ha Ha, now that is progress, is that Not progress!!! Excellent example of the outstanding education system and outstanding civil service. Now it is not surprising, we knew that since 1980′s – how many engineers from UM, UKM graduates knows how to integrate, and how many UM economists knew how to aggregate!!! I know of Corporate Malaysian “Bankers” that don’t know how to use spreadsheets like @FV(apa itu! bukan FU?)!!!
james - October 22, 2010 at 10:15 pm