Looks like the poor and the rural areas will suffer most when looking at matters that Najib did not highlight in his speech...or is not the focus of this new BN Budget.
Looks like more subsidies will be significantly reduced or maybe even removed...may also include cooking oil - maybe even electricity and water.
Whilst KL and Klang Valley continue to be showered with more money and development - rural areas will not only not the money to increase development - but they will also find their already small government allocations reduced. [Najib should take a drive around Malaysia, using normal roads and he will see the state of affairs in the rest of Malaysia - even roads(them non tol roads) are in poor condition, some even the white lines are not visible anymore making it most dangerous during nights and rain. Remember the old BN promise, when they started with these tol highways - yes, that promise to maintain and upgrade our free roads - but somehow all seem to have been forgotten.
Look at the train services on the east coast - looks like nothing much spend by the BN since Independence to upgrade it. Additional train lines in the east coast has also not been built - when really there should have been a train line linking Kota Bharu - Kuala Trengganu - Kuantan - Johor Bahru. Maybe even a train line linking Kuantan-Temerloh- Kuala Lumpur. Remember, without a proper transportation, development also will get stagnated. New tol highways by-pass many towns, and this too effect the stagnation of development.
It was the UMNO-led BN government that kept wages low to attract foreign investors - so the poor condition and stagnated social mobility suffered by the poor and rural communities, including smaller towns is all the fault of BN. At least, then the government kept cost of living low - and, as such people could still live happily though not becoming rich. But Najib's BN today, is removing subsidies and increasing cost of living - and wages/income is still low.
Wow - modern KL and Klang Valley - but really what about the rest of Malaysia? What about the poor?
See also:-
Najib's BUDGET 2016 SPEECH -
Taxing super-rich higher rates is just - finally BN getting it right?
Subsidy cuts and other things Najib didn't tell you in Budget 2016
Prime Minister Najib Abdul Razak offered a list of good news under
Budget 2016 which included a hike in civil servants' pay, increase in
BR1M cash handouts, and Goods and Services Tax rebate for mobile phone
purchase.
But where is all the money coming from when the country is facing falling revenue from a slump in commodity prices?
Malaysiakini uncovers the ‘bad news’, by breaking down Budget 2016 for you based on ministries which have suffered the worst cuts.
What the premier failed to mention in his budget speech include the likelihood of pricier cooking oil, more expensive train and flight tickets on 'uneconomical' routes, the poor having to pay for their electricity bills, and other subsidy cuts.
1) Finance Ministry - General subsidies almost halved
2) High Education Ministry - Less money for universities
The second largest cut was targeted at the Higher Education Ministry which saw its budget reduced by RM2.4 billion to RM13.378 billion.
To make up for the shortfall, public universities will suffer the brunt of the cut as they will see their funding reduced by RM1.442 billion.
The worst hit universities are Universiti Malaya, followed by Universiti Malaysia Terengganu and Universiti Teknologi Mara, which budget were slashed b 27.3 percent, 23.76 percent and 23.72 percent respectively.
Some MPs, including Bayan Baru MP Sim Tze Tzin, have raised concerns if this will mean higher tuition fees next year.
3) Commodities Ministry - Pricier cooking oil
Plantation Industries and Commodities Ministry saw a 60.76 percent reduction to its budget from RM1.659 billion to a mere RM651 million.
While the ministry's programmes saw an across the board reduction in allocation, it will be the consumers who will feel the burden the most.
This is because the single largest cut came from the RM950 million cooking oil price stabilisation scheme which was completely defunded under Budget 2016.
Under the scheme which was introduced in 2007, it ensured a ceiling price on cooking oil, as well as sufficient supply in the market by compensating producers.
With the scheme effectively abolished next year, consumers are likely to pay more for cooking oil.
4) Transport Ministry - Train, flight subsidies reduced
The Transport Ministry will see a budget reduction of 14.1 percent, or RM648 million, to RM3.955 billion, the fourth largest cut among the ministries.
Areas that will see cuts include subsidies for KTM trains and flights from rural regions.
Specifically, the subsidy on "uneconomical" KTM routes will be slashed by more than half, from RM52.9 million to RM25 million.
Subsidy for rural flights, as well as on aircraft rental, will also be reduced by RM5 million from RM160 million.
Other reductions will come primarily from the ministries' operations.
5) Energy Ministry - No more electricity subsidy
The Energy, Green Technology, and Water Ministry comes in at fifth place for the largest allocation cut under Budget 2016, with a reduction of RM605 million to RM2.262 million.
Likewise, it will be consumers who will suffer the most as the single largest slash is the electricity bill subsidy of RM150 million which will be completely defunded.
Presently, households which use less than RM20 in electricity have their bill fully subsidised by the government to help poor families.
6) Defence Ministry - Downsized national service
The Defence Ministry will see a budget reduction of RM459 million, the sixth largest cut to a ministry.
The amount is relatively small compared to the Defence Ministry's huge budget of 17.304 billion for next year.
The cut came largely from the downsizing of the national service programme which allocation will be reduced from RM614 million to RM276 million.
However, other areas have also seen cuts, including a reduction of RM100 million to RM2.701 billion for air defence, even as the government plans to acquire new assets in difficult economic times.
Under Budget 2016, the Defence Ministry will acquire six Littoral Combatant Ships, Very Short Range Air Defence weapons system, armoured vehicles, and the A-400M Airbus.
7) Urban Ministry - Solid waste management
The Urban Wellbeing, Housing and Local Government Ministry is the only other ministry to have experienced a cut of more than RM300 million.
Under Budget 2016, the ministry will be allocated RM4.173 billion - compared to RM4.572 billion this year - a reduction of RM399 million.
The single largest cut will come from solid waste management; its funding will see a reduction of 17.3 percent from RM1.036 billion to RM857.1 million.
It remains unclear how the ministry is going to handle solid waste management while still saving RM178.9 million.
However, it should be noted the ministry's budget provided for RM15 million for the operation of a new landfill next year, which is a more economical method of waste disposal.
*This list excludes the Home Ministry; its Federal Expenditure Estimates has yet to be uploaded by the Finance Ministry.
But where is all the money coming from when the country is facing falling revenue from a slump in commodity prices?
Malaysiakini uncovers the ‘bad news’, by breaking down Budget 2016 for you based on ministries which have suffered the worst cuts.
What the premier failed to mention in his budget speech include the likelihood of pricier cooking oil, more expensive train and flight tickets on 'uneconomical' routes, the poor having to pay for their electricity bills, and other subsidy cuts.
1) Finance Ministry - General subsidies almost halved
At
first glance, it would appear the Finance Ministry had suffered the
worst from an austerity budget, with its allocation being slashed by RM7
billion or 17.8 percent, from RM39.247 billion to RM32.247 billion.
However,
closer scrutiny showed the heavy cut was made possible through a
reduction in subsidies which is expected to go down by a whopping 45
percent, or RM8.707 billion to RM10.633 billion.
Other notable
cuts in the ministry include a 95 percent reduction in allocation to the
Poor Students' Trust
Fund (Kumpulan Wang Amanah Pelajar Miskin) from
RM200 million to a mere RM10 million.
These cuts allowed for
increased spending in other areas, including an allocation of RM1.073
billion to deal with the new increase in minimum wage.
The
government has already embarked on an aggressive subsidy rationalisation
exercise since the beginning of this year and it is unclear where the
further subsidy reduction will come from.
2) High Education Ministry - Less money for universities
The second largest cut was targeted at the Higher Education Ministry which saw its budget reduced by RM2.4 billion to RM13.378 billion.
To make up for the shortfall, public universities will suffer the brunt of the cut as they will see their funding reduced by RM1.442 billion.
The worst hit universities are Universiti Malaya, followed by Universiti Malaysia Terengganu and Universiti Teknologi Mara, which budget were slashed b 27.3 percent, 23.76 percent and 23.72 percent respectively.
Some MPs, including Bayan Baru MP Sim Tze Tzin, have raised concerns if this will mean higher tuition fees next year.
3) Commodities Ministry - Pricier cooking oil
Plantation Industries and Commodities Ministry saw a 60.76 percent reduction to its budget from RM1.659 billion to a mere RM651 million.
While the ministry's programmes saw an across the board reduction in allocation, it will be the consumers who will feel the burden the most.
This is because the single largest cut came from the RM950 million cooking oil price stabilisation scheme which was completely defunded under Budget 2016.
Under the scheme which was introduced in 2007, it ensured a ceiling price on cooking oil, as well as sufficient supply in the market by compensating producers.
With the scheme effectively abolished next year, consumers are likely to pay more for cooking oil.
4) Transport Ministry - Train, flight subsidies reduced
The Transport Ministry will see a budget reduction of 14.1 percent, or RM648 million, to RM3.955 billion, the fourth largest cut among the ministries.
Areas that will see cuts include subsidies for KTM trains and flights from rural regions.
Specifically, the subsidy on "uneconomical" KTM routes will be slashed by more than half, from RM52.9 million to RM25 million.
Subsidy for rural flights, as well as on aircraft rental, will also be reduced by RM5 million from RM160 million.
Other reductions will come primarily from the ministries' operations.
5) Energy Ministry - No more electricity subsidy
The Energy, Green Technology, and Water Ministry comes in at fifth place for the largest allocation cut under Budget 2016, with a reduction of RM605 million to RM2.262 million.
Likewise, it will be consumers who will suffer the most as the single largest slash is the electricity bill subsidy of RM150 million which will be completely defunded.
Presently, households which use less than RM20 in electricity have their bill fully subsidised by the government to help poor families.
6) Defence Ministry - Downsized national service
The Defence Ministry will see a budget reduction of RM459 million, the sixth largest cut to a ministry.
The amount is relatively small compared to the Defence Ministry's huge budget of 17.304 billion for next year.
The cut came largely from the downsizing of the national service programme which allocation will be reduced from RM614 million to RM276 million.
However, other areas have also seen cuts, including a reduction of RM100 million to RM2.701 billion for air defence, even as the government plans to acquire new assets in difficult economic times.
Under Budget 2016, the Defence Ministry will acquire six Littoral Combatant Ships, Very Short Range Air Defence weapons system, armoured vehicles, and the A-400M Airbus.
7) Urban Ministry - Solid waste management
The Urban Wellbeing, Housing and Local Government Ministry is the only other ministry to have experienced a cut of more than RM300 million.
Under Budget 2016, the ministry will be allocated RM4.173 billion - compared to RM4.572 billion this year - a reduction of RM399 million.
The single largest cut will come from solid waste management; its funding will see a reduction of 17.3 percent from RM1.036 billion to RM857.1 million.
It remains unclear how the ministry is going to handle solid waste management while still saving RM178.9 million.
However, it should be noted the ministry's budget provided for RM15 million for the operation of a new landfill next year, which is a more economical method of waste disposal.
*This list excludes the Home Ministry; its Federal Expenditure Estimates has yet to be uploaded by the Finance Ministry.
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