SHAH ALAM, 23 Oct: The Budget 2014 is expected to reach RM270 billion, involving an increase of nine percent compared to RM260 billion for the Budget 2013.
The increase is expected to cause the national fiscal deficit to increase by about 0.5 percent to one percent.
Terengganu PKR Chairman, Azan Ismail said the budget which will be tabled by the Prime Minister, Datuk Seri Najib Razak on 25 October will record a deficit for the 16th time in a row.
“This year, the amount if RM260 billion, but it may increase by about RM10 billion for 2014. This increase would cause the national deficit to increase by about one percent or at least 0.5 percent,” he said when contacted yesterday.
Azan said the approach used by Najib, who is also the Finance Minister, proves that the Barisan Nasional (BN) Government has failed in controlling spending by being responsible and prudent.
“For Pakatan Rakyat (PR), we will not guarantee a balanced budget, but we will try to present a budget where the deficit is not too high.
“If the increase in expenditure is RM10 billion to RM15 billion, we too have to increase to curb a higher increase in deficit,” he said.
Opposition Leader, Datuk Seri Anwar Ibrahim, presented the Alternative Budget summary which amounts to RM262 billion, compared to an estimated revenue of RM228 billion, with the deficit of RM34 billion, on 21 October.
Among the contributing factor involved in the reduction is that the emoluments that are reduced by 10 percent involves operating expenses that do not include emoluments and the effort is a part of the long-term measures to reduce the country’s debt of over RM500 billion.