Veterans group the National Patriots Association (Patriot) has voiced their concern that the RM250 billion stimulus package announced by Prime Minister Tan Sri Muhyiddin Yassin were sung praises by politicians and economists without worrying about the source of funds and how the funds will be disbursed.
Patriot president Brigadier-General (Rtd) Datuk Mohamed Arshad Raji said if the execution of funds disbursement is not well carried out, the huge amount may turn into a gargantuan economic leakage.
“There is no denial that an economic stimulus package is necessary at this juncture of the economic downturn made more critical by the pandemic. But the source of funds must be clearly planned and announced. It must not cause too much a future burden to our people and nation,” he said in a statement today.
He also cautioned the government not to act hastily or find the easy way out by selling key national assets.
“Every important decision must be carefully thought out. Such a large amount of RM 250 billion should ideally be debated in parliament before approval. We must uphold the principle of accountability. We must respect the role of check-and-balance in parliament,” he said.
Mohamed Arshad also cautioned that the country’s national gold reserve must not be sold to raise funds for this stimulus package.
“We currently have 3.88 tonnes of gold and not a single ounce must be sold. In the past when discussing the national budget, we had urged the government to accumulate more gold. That was when the price was around USD1,280 per ounce and the price of crude oil was around USD60 per barrel. Today we would have been better off had our suggestion been taken seriously. Our frequent urging of politicians to focus on the economy and less on politicking had fallen on deft ears,” he said.
He also said the increase in the budget deficit of 4% of the GDP due to the stimulus package could be dangerous and not sustainable.
“Much of our future budgets will have to be allocated for debt servicing. In the 2020 budget about RM 35 billion or 11.7% of the budget was allocated for debt servicing. Economically it is unhealthy. We are not faulting the government, but merely cautioning. A continuous increasing budget deficit is postponing the problems, like sweeping the garbage under the carpet. There is no escape as problems like flocks return to roost. Furthermore, future generations must not be made to inherit any current mismanagement of our economy,” he said.
He added that whatever the amount, however the funds being disbursed, the government must be accountable and do not add burden to the people now and the future generations. – The Sun Daily