Prime Minister Datuk Seri Abdullah Ahmad Badawi will be looking at today’s Budget speech to not only boost the Malaysian economy but also shore up his flagging political fortunes.
Government officials and his loyalists hope that the announcement of a sackful of goodies including a central agency to overhaul public transportation, tax relief and direct cash benefits for those in the lower and middle-income groups will inject some feel good sentiment into the system and change the news cycle from Datuk Seri Anwar Ibrahim and the defeat in Permatang Pauh to something more neutral for the Barisan Nasional government.
Cabinet ministers have been urging Abdullah and Second Finance Minister Tan Sri Nor Mohamed Yakcop to change the philosophy of prudence that has been the main plank of government spending since Abdullah took over power in October 2003.
They believe that the government should help Malaysians cope with rising inflation rather than be too rigid about cutting the budget deficit. For these ministers, the equation is simple — government has to pump prime or face the prospect of more dissension within the ruling coalition and disenchantment on the ground.
As a result, the government will lift the rein on spending and push the budget deficit from 3.2 per cent to beyond 4 per cent.
For Abdullah and his government, it has come down to this: throw away the shackles on spending, worry about the backlash from analysts and hope that the goodies from an expansionary budget cascades to the man in the street. The Prime Minister will table the budget at 4pm and it will be telecast live over national television.
Click here for live update of the Budget 2009
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