Shadow Budget doesn’t add up
(The Star) – The Opposition’s shadow Budget failed to consider that Petronas’ profits are shared with, among others, the petroleum service contractors, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
He said a certain amount of profit should be apportioned to petroleum companies as agreed upon earlier.
“The Pakatan Rakyat’s Budget aims to increase oil royalties to the states from 5% to 20%. This means that less profits will be shared between Petronas and the petroleum service contractors like Shell and Esso.
“Hence, Petronas will give lower annual dividends to the Government,” he said at his ministry’s office in Jalan Duta here.
Mustapa said if the Opposition were to form the Federal Government and went ahead with its own Budget, it would not have enough funds to fulfil their general election pledges.
“They will lack funds to make foreign investments and yet, Opposition Leader Datuk Seri Anwar Ibrahim says he wants to offer free education to the people,” he said, adding that the shadow Budget was “reckless, irresponsible and foolish”.
Mustapa said the National Higher Education Loan Fund (PTPTN) had disbursed RM46.8bil in loans, of which RM25.7bil was borrowed from various finance agencies.
“If the Opposition wants to offer free education, how are they going to pay off these loans? The Pakatan Budget also includes its pledge to abolish tolls, which would require an expenditure of RM6bil to compensate concessionaires,” he said.
“We are saddened by such populist moves. The Opposition is hiding facts while the people are tricked into believing that it is workable.”
Mustapa claimed that “not a single sen” was incorporated into the Pakatan Budget to fulfil their promises to the public and likened it to “cheating people in broad daylight”.
Pakatan also claimed that it could reduce the country’s deficit from 4.0% to 3.5%.
However, Barisan Nasional leaders have countered this, alleging that the Opposition Budget would cause the country to have a deficit of 7.2%.
