Budget 2009 to focus on helping people cope

PETALING JAYA: Improving people’s well-being especially those from the lower and middle income groups is expected to be a major thrust of Budget 2009 which will be tabled today.

Prime Minister Datuk Seri Abdullah Ahmad Badawi is expected to announce measures to ease or minimise the rakyat’s burden caused by high fuel and food prices.

High on the priority list will be widening the social safety net with more measures to help lower income groups and those who are disadvantaged.

State of the nation: Datuk Seri Abdullah Ahmad Badawi, flanked by Second Finance Minister Tan Sri Nor Mohamed Yakcop and Datin Seri Jeanne Abdullah, showing a copy of the Economic Report during the traditional ‘eve of Budget Day’ visit to the Finance Ministry in Putrajaya last night. The Prime Minister and his wife continued the tradition of providing supper for the Ministry staff who were working late last night. Abdullah will table the Budget in Parliament today. — ROHAIZAT MD DARUS / The Star

Budget 2009 will also address issues like food supply shortages and the possibility of increasing subsidies for essential food items.

Public transport is expected to be given a major boost so that people will be able to reduce or cut travelling expenses resulting from the use of private vehicles.

They are also expecting more measures to be taken to ease the bottlenecks in the public transport system such as the shortage of trains, buses and other transport infrastructure.

The Government is also expected to focus on fast-tracking rural infrastructure, water supply and drainage in Sabah and Sarawak.

On the Employees Provident Fund, it is understood that the Government has been mulling over suggestions to reduce employees’ contributions rate for a specified period to increase the disposable income of the rakyat.

For the tax-paying lower income group, economists expect the Government to widen the income tax band or provide more relief.

Economists are anticipating that the Budget would provide better access to quality education and healthcare, and affordable housing.

They said government programmes and projects are expected to be evaluated constantly to ensure they deliver value-for-money.

Kenanga Investment Research economist Wan Suhaimi Saidi said the Government wanted to ease the pain of individuals and businesses amid rising costs.

However, he said consumers should not expect the Government to put more money into their pockets via the reduction of other taxes on goods and services.

CIMB economics research head Lee Heng Guie said the Budget proposals would address a number of concerns including high inflation and how to help the man in the street cope. This could involve the widening of the income tax band.

He added the Government would also have to focus on the long-term objectives including training and education and also ensure the country’s competitiveness in the medium to long term.