Thread by @WongChenPKR

#Belanjawan2021 Some very quick notes:

1. Budget is biggest ever at RM323 billion.

2. Deficit is at RM84 billion or 5.4% of GDP.

3. Opex is RM164 billion, Tanggungan RM72 billion, Devex RM71 billion, Covid-19 Fund at a surprisingly small RM17 billion. (1/n)

As the MoF reads his speech, I’m reading (at a furious pace) the budget books on my desk.

Am looking at revenue... Wow the government predicts a bigger collection on corporate income tax next year than the pre-covid year of 2019! Someone is somewhat super over optimistic? (2/n)

For 2019, the govt collected corporate income tax of RM63.75 billion. For 2021 the government is now projecting RM64.60 billion. I suppose the government believes that Covid-19 will just disappear on 1st January, as predicted by the super genius Trump. (3/n)

Am now looking at operating expenditure.

As the MoF is reading out a list of subsidies and social assistance, and PN MPs are applauding him, I am looking at the published numbers in the Fiscal Outlook book. (4/n)

According to the book, subsidies and social assistance is going to be reduced from RM23.9 billion (2019), RM 20.14 billion (2020) will be reduced to RM18.85 billion for 2021. This is a fall of 6.4% compared to 2020. (5/n)

How can this be right? The government is probably moving expenditure items about and moving them to the Covid-19 Fund? (6/n)

The MoF has just announced a 1% personal income tax reduction to those earning RM50,000 to RM70,000. Last Sunday, I had proposed to him to consider a 2% reduction across the board for all taxpayers. Something is better than nothing, I suppose. (7/n)

On the moratorium, no blanket moratorium but targeted at B40 to get a 3 months moratorium or elect to 50% repayments for 6 months. He also said M40, application for loan moratorium will be simplified. However, nothing whatsoever for loan moratorium for companies. (8/n)

I am starting to ignore the MoF speech and focus again on the documents. I note the development expenditure is gonna hit a record high of RM71 billion. Wow, however this could also be an accounting treatment. (9/n)

Last Sunday, PH proposed to MoF to spend more money on internet connectivity and better water supply. Well, he has responded...with a miserable RM3.3 billion (4.8% of the total development expenditure) to cover "electricity, water supply, telecommunications and sewage". (10/n)

Am drifting in and out of his speech; managed to catch some good things to report: greater protection for women from domestic abuse, more participation of women in business. There are also more funds for child care centres. More cervical cancer and breast cancer tests. (11/n)

Let me try to collect and relay my initial thoughts.

Immediate reactions: very, very optimistic budget in terms of revenue projections and growth. (12/n)

Nothing much here in terms of seriously tackling Covid-19, just RM17 billion... for wage subsidy, social support. (13/n)

I thought this was suppose to be a budget focusing on the Covid-19 issues, therefore I had expected the govt to allocate around RM40 to RM50 billion of Covid Fund for 2021. (14/n)

But no, the bulk of the spending seems to be business as usual. Big Opex and big Devex. Relatively, small Covid-19 Fund. (15/n)

The MoF has largely in terms of money allocated, ignored the bulk of PH six key recommendations. Is this sayonara to the Unity Budget idea? (16/n)

Looks like it, but I will need the whole weekend to go thru the documents, slightly less than 1,000 pages combined, more carefully with my officers, intern and volunteers. (17/n)

Am mentally exhausted and gonna take a break now. I feel like I am cramming for an exam! (18/n)