Budget Planning 101: A Reality Check
Economy minister Rafizi Ramli has taken to social media to clarify the government’s budget planning process, responding to recent criticism from MP Syed Saddiq Syed Abdul Rahman.
The Government’s Budget Planning Process
A budget, as defined by Rafizi, is the government’s statement of its plans and intentions for the year. In other words, it is a statement of estimated income and expenditure. This is based on early estimates of policies and projects to get Parliament’s approval. Once approved, the government uses this approval to work on the details of the projects, including opening tenders, appointing contractors, and so on.
A Lesson from Experience
As someone who has been a minister himself, Syed Saddiq should be well-versed in the budget planning process. "He should be familiar with this process, having once been the youngest minister ever," said Rafizi. This experience should give him a deeper understanding of the challenges and complexities involved in budget planning.
The Need for Flexibility
Rafizi emphasized that the government’s figures announced are estimates and projections. This is because the details of the projects and policies may take time to finalize. If every detail must be confirmed before being announced in a budget, it would take years to complete one budget. In this case, the government would need to print volumes of budget books for every MP.
A Word of Caution
Former Muda president Syed Saddiq had previously criticized Prime Minister Anwar Ibrahim for announcing the T15 grouping in the 2025 budget without having finalized its definition. "How could the government announce in the budget that the ‘mahakaya’ (extremely wealthy) enjoys RM8 billion in (RON95) petrol subsidies (a year)?" he asked. His warning was clear: "Don’t ‘announce first, think later’. People’s lives are at stake."
Conclusion
In conclusion, the government’s budget planning process is complex and requires careful planning. While some may criticize the lack of detail in the announced figures, it is essential to understand that the process is based on early estimates and projections. Rafizi’s experience and insight in this matter can provide valuable lessons for all parties involved in the budget planning process.
FAQs
Q: What is the government’s budget planning process?
A: The government’s budget is a statement of estimated income and expenditure based on early estimates of policies and projects to get Parliament’s approval.
Q: What is the purpose of the budget?
A: The budget is the government’s statement of its plans and intentions for the year.
Q: How does the government plan its budget?
A: The government plans its budget based on early estimates of policies and projects to get Parliament’s approval. Once approved, the government uses this approval to work on the details of the projects.
Q: What is the focus of the government’s budget?
A: The focus of the government’s budget is to improve the lives of the people by providing essential services and infrastructure, while also promoting economic growth and development.