Cash handouts for the poor
For 2014, the federal government will have even more money to splurge. The operational expenditure (opex) will be increased by 7.8 percent, from RM201.8 billion to RM217.7 billion.

This is not in tandem with a projected 6.3 percent projected increase in revenue between 2013 and 2014 and a drastic 6.4 percent reduction in development expenditure, which was supposed to be for projects that provide a multiplier effect for the economy.
NONEHow is it possible for the Najib administration to justify urging the people to tighten their belts when it has never shown the slightest inclination to do the same?

To make matters worse, Budget 2014 is designed to keep those who don't pay income taxes, or pay a negligible amount, happy with an increase in cash handouts.

BR1M 3.0 has been increased by a whopping 30 percent to RM650, thereby partly explaining the opex increase. In essence, Najib is widening the tax base and then wasting more money for administrative purposes to disburse it back to low-income earners.

Irony? Not really. Low-income earners outnumber middle-income earners. The question to ask is why after decades of Malaysia Plans, we still have a huge swath of low-income earners who need cash handouts to get by?

More importantly, why despite poverty eradication programmes Malaysia's income inequality gap is highest in Asia, with the exception of Papua New Guinea.

No subsidy cuts for fat cats?

What's more ironic is how Najib mentioned in his speech that subsidies benefit the rich most. He then declared that the best measure to tackle this is to remove subsidies for sugar altogether. What about the independent power producers that enjoy generous subsidies from the government? Shouldn't these fat cats be the first on the chopping block?

Instead of bluntly saying that the public has to pay more so the government can spend more, Najib provides a meek excuse that removing subsidies can help prevent diabetes. Has he even checked the mean waistline of his cabinet? It's likely higher than the national average.
petrol price hike protest 2 100306 klcc towerIt would be foolish to think that the government will stop here. Expect fuel prices to go up soon and a supplementary budget or two over the next 12 month. Narrowing the deficit? Hah! Most voters don't even have a inkling of it.

If there is one group that will get worked up it is going to be the middle-income earners, not the "1 percent" and definitely not the low-income earners. It has pretty much been that way every Budget. They don't vote BN anyway.

But still, they are expected to pay their taxes as usual while paying more to ensure their families are well taken care of. If there can only be one word for the Najib administration's attitude towards the middle-income earners, it is going to be "contempt".


ANDREW ONG is an assistant news editor at Malaysiakini.