by Melissa Lee
Opposition Leader Anwar Ibrahim has again challenged Prime
Minister Najib Razak to a debate on the country's economic health following the
recent release of the Pakatan Rakayat's shadow budget and Najib's Budget 2012.
Anwar threw down the gauntlet after Najib called Pakatan's
Prosperity for All Budget as a "right-winged Republican budget that fails
to understand the people’s needs".
“This shows that Najib is avoiding the basic issue plaguing
his administration which is a shady management, filled with corruption and BN’s
policiea that are enriching their families and cronies,” he said in a statement
on Monday.
“Since the Pakatan Rakyat launched the Orange Book in 2010, I
have already invited Najib to a debate. Public discourse between Pakatan and
his administration is surely beneficial to the people especially since our
economy is going into unchartered territories as well as his administration’s failure
to boost Malaysian economy."
Unlikely
to accept
Nevertheless, despite Anwar's call, Najib is unlikely to pick
up the gauntlet. This would not be the first time the PM has shied away from a
nationwide TV debate with Anwar, a gifted orator and star Finance minister in
the 1990s. Najib also holds the finance portfolio in addition to the
premiership.
Anwar also ticked off Najib for his 'irresponsible demeanour'
in shrugging off the past debate challenge as the people had the right to the
full picture on what was happening in the country and their wealth.
Anwar warned the country’s debt rate was fixed by two laws.
These were the Act 637 Loan Act (Domestic) 1959 (revised 2004) and Act 275
Government Investment Act 1983, which fixes the domestic loan rate to not
exceed 55% of the country's GDP, while the Act 403 Foreign Loan Act 1963
(revised 1989) limited the foreign loans to RM35 billion at a time.
Apart from these restrictions, the Treasury also has strict
regulations aimed at enforcing fiscal discipline. “This practice was put even
before I was the Finance Minister,” said Anwar, who is also Permatang Pauh MP.
Only
another RM33billion limit left
According to Anwar, the budget management for a certain year
cannot exceed income projections, while government loans can only be spent for
development.
As such, he warned that public discourse must be held as the
debt rate had become a legislative matter and of grave national importance, now
that the Najib administration has nearly hits the debt ceiling.
He urged Najib not to try hide or cover the matter from the
people. Anwar warned that Bank Negara's latest report (revised 14 October 2011)
showed that national debt has already reached RM437 billion as at 30 June 2011.
This was broken down to RM421 bllion in domestic loans and RM16 billion in
foreign loans.
"This means that the country's domestic loans ratio to
the country’s GDP is already 51%, very near to the 55% cap placed by the Act
637 and Act 275. This in turn means that Malaysia can now only borrow up to
RM33billion in new debt," said Anwar.
"Therefore, it is clear that the government does not
have sufficient money to fund the excessive spending for the year 2011 nor the
RM46 billion deficit due to be funded by the additional debt as announced in
the Budget 2012."
Growth
projections make Malaysia a laughing stock
According to him, Najib's 5%-6% GDP growth projection was not
accurate and made the country a laughing stock. Just days ago, Singapore
trimmed its growth forecast along with the IMF's reduced forecast for global
growth.
"Public debate and discourse regarding the economy is
now a must especially when Datuk Seri Najib Razak’s administration announced
non-convincing economic data and election consolidations which are surely not
enough to boost the country’s economy,” said Anwar.
"However, if Najib feels that his economic agenda can
benefit the people, it is important for him to explain the details to the
public including stating the reasons on why he failed to implement an overall
change in the economic structure including implementing a minimum wage and stop
the monopoly in the goods and public service sector."
Source : MC
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