Press Statement by MCA Central Committee Member Lau Chin Kok

Budget 2019’s new record: 7-year high unbalanced expenditure, 5-year high deficit

Pakatan Harapan is all set to break records with their Budget 2019, namely a seven-year high allocation for administrative and development expenditure, a five-year high deficit, and an increase of tens of billions of Ringgits in total expenditure. In fact, under the new government, GDP growth is estimated to decline to 4.9%.

The total expenditure next year will hit RM314.55 billion, as compared to this year’s RM280.25 billion; this is a whopping increase of RM34.3 billion or 12.24%.  Yet, there is a highly disproportionate between the allocations with administrative expenses accounting for RM 259.85 billion and development expenses only RM54.7 billion.

The government must balance the two better, reducing administrative cost while enabling more developments. This allows the stimulation of our economy, invaluable especially at a time where our country is affected by the ongoing China-United States trade war.  A federal budget, poor balanced in terms of administration and development shall inevitably grow our national debt.

Previously, the PH government insisted it will start penny-pinching by reducing administrative expenditure. What we are witnessing right here is another U-turn. Amidst the total administrative expenses, a sizable RM82.05 billion is spent simply of the welfare of government officials. Clearly, Pakatan Harapan’s gasconade of cutting back has failed.

Budget 2019 has brought nothing to the plate for the middle income. With no tax reliefs, their burdens are bound to  exacerbate next year.

Alas, the PH government chose to turn a blind eyes to these issues, and naively assume that as long as that they are in power, the national economy will somehow take a turn for the better. If Pakatan Harapan continues its delusion and neglect the economic downturn, the nation will slump into a great depression; a result of incompetent politicians and unsound policies.

Lau Chin Kok
MCA Central Committee Member

-MCA Online-