Rafizi: Bigger savings if Putrajaya cuts 30pc off car excise tax

(MM) – The Najib administration could save a whole lot more by shaving 30 per cent off car excise duties and maintaining the current highway toll rates, PKR’s Rafizi Ramli said today.

In comparison, the federal government would save only RM604,238 a year if it proceeds with its plan to trim the entertainment allowances of ministers and deputy ministers by 10 per cent, the opposition lawmaker argued.

Rafizi also urged Putrajaya to stop funding vague projects, such as the RM278 million National Blue Ocean Strategy that was announced in Budget 2014, and to freeze all privatisation projects under the Public Private Partnership Unit (UKAS) in the Prime Minister’s Department, especially the privatisation of Universiti Teknologi MARA (UiTM) campuses throughout the country that could incur billions of ringgit more in public spending.

“Datuk Seri Najib’s actions are no different than Tun Abdullah Badawi’s announcement in 2008, when he had also announced the cutting of ministers’ entertainment allowances by 10 per cent,” said Rafizi in a statement today, referring to incumbent Prime Minister Datuk Seri Najib Razak and the latter’s predecessor.

“That step did nothing to stop Barisan Nasional’s wastages as the budget deficit has continued for 16 years in a row,” added the PKR strategic director.

Yesterday, Najib announced 11 measures that Putrajaya will implement from January 1 next year to slash public expenditure, such as cutting the entertainment allowance of ministers and deputy ministers by 10 per cent and that of senior government officers on the Jusa C Grade and above by between five and 10 per cent.

Rafizi noted that based on previous media reports, the monthly entertainment allowance for the prime minister is RM16,979, deputy prime minister (RM13,514), each of the 30 ministers (RM11,088), and each of the 26 deputy ministers (RM5,400).

A 10 per cent cut would result in savings of RM50,353 a month, or RM604,238 a year, Rafizi claimed.

“This shows that Datuk Seri Najib is only cutting RM1,698 a month from his funds that amount to billions. From the RM6.8 billion allocated to him for various political campaigns (through facilitation funds of RM4 billion, community projects of RM900 million, rakyat-friendly programmes of RM665 million, development programmes of RM1.1 billion and special projects of RM202 million), not one sen was cut, even though such expenditure is the reason why public funds are being wasted,” said Rafizi.

Apart from the allowances, the prime minister said yesterday that the government will also trim its consumption of food and drinks, as well as the use of buntings and banners during conferences, seminars, meeting, courses, workshops and other official functions.

The use of event management firms and the handing out of door gifts or souvenirs during such events will also be reduced, Najib said.

Other measures include a reduction of 30 per cent or between RM50 and RM100 in the toll facility offered to senior government officers.

The eligibility for domestic and international flight tickets for civil servants will also be amended, where those in the Jusa C Grade and below will only be eligible for economy class tickets on domestic flights.

Najib also announced yesterday that the electricity cost at all ministries, government departments and agencies will be reduced by five per cent.

Fresh applications for the renovation of government offices will be put on the back burner for the time-being, Najib said, while existing office space will be fully optimised to keep spending low.

The appointment of consultants for government projects, and for the conducting of feasibility studies will be tightened further, with each application to be first approved by the National Development Planning Committee, which is chaired by the Chief Secretary to the Government.

Since September, Putrajaya has embarked on aggressive cost-cutting measures after pressure grew for it to rein in a chronic budget deficit that traces back to the Asian Financial Crisis of 1997, and which has left Malaysia’s national debt at just below a critical legal ceiling.

Among others, Putrajaya has reduced fuel subsidies, removed price control for sugar, allowed an increase in electricity tariffs and confirmed the introduction of the goods and services tax (GST), all within the space of four months.

But the spending cuts have only earned the Najib administration widespread criticism from the public, who complained against having to tighten their belts at a time when financial mismanagement and corruption still seemed rampant in the government.