Budget 2003 unveiled by Prime Minister Dr Mahathir Mohamad's budget has been described as an "election budget" out to woo flagging support, particularly among Malay voters.

PAS deputy president Mustafa Ali (PAS-Dungun) said that although there was no tax increase, emphasis was placed on Malays who are mostly Class F contractors.

"But there is no emphasis to address issues like poverty and housing for the poor. There are only short term measures aimed at the coming elections," he added.

Mahathir tabled the 2003 budget which concentrates on efforts to stimulate domestic business and industrial activities to generate higher economic growth.

The premier, who is also finance minister, outlined measures to further reduce the cost of doing business to enhance the country's competitiveness.

He did not propose any increase in taxes nor introduce new ones. However, to ensure that the government will have adequate financial resources to finance its expenditure, efforts will be intensified to enhance tax compliance.

The premier proposed, in line with the policy to promote domestic investment, that the corporate tax for small and medium size industries with paid-up capital of RM2.5 million and below be reduced from 28 per cent to 20 per cent on chargeable income up to RM100,000.

Civil servants also had cause to cheer following Mahathir's announcement that they will receive one-month bonus or a minimum of RM1,200.

The government will also allocate nearly RM5 billion from 2002 to 2008 for the implementation of the language switch where Science and Mathematics will be taught in English in schools.

Mahathir said the two-year budget preparation was to ensure the smooth implementation of development projects as implementing agencies would have time to plan and carry out projects.

Regain rural ground

Meanwhile, DAP secretary general Kerk Kim Hock (DAP-Kota Melaka) decribed the budget proposals as "painless" as there was no tax increase.

"But this strategy is meant to regain lost ground in rural areas. I am surprised at Mahathir's frankness when he mentioned tongkat (crutches). He should really look into this area before he retires," he said.

The DAP leader said Malaysia was losing in terms of foreign direct investment but Mahathir did not address the issue in his budget.

"We are losing to China not only because of low labour cost but also to a highly skilled workforce," he added.

Keadilan president Dr Wan Azizah Wan Ismail described the RM20 billion deficit as compared to last year's RM18 billion, evident in this year's budget as "worrying".

She said there was also no mention of how the government was planning to handle corruption.

Wan Azizah added it was unfortunate that Mahathir did not heed the advice of education experts on the move to switch the medium of instruction in Science and Maths to English.

"The RM5 billion allocated for the language switch in schools for the next seven years indicates that he is not bothered about the advice by education experts who oppose the move," she said.

Some similarities with BA budget

Meanwhile, several opposition MPs commented that there were some similarities between Mahathir's budget and the alternative budget presented by Barisan Alternatif on Tuesday.

Husam Musa (PAS-Kubang Kerian) said the reduction of eight percent corporate tax for companies earning less than RM100,000 was "exactly similar" to the proposal in the BA budget.

"Mahathir's budget also stressed on benefitting families, youths and civil servants. He seemed more detailed this time, and has considered many sectors such as the disabled, women and retrenched workers," he added.

Saupi Daud (Keadilan-Tanah Merah) echoed Mustafa's remark that the budget was a ploy to gain Malay votes.

"Incentives for Malay contractors will eventually benefit Umno cronies who are going to gain with the various coming projects in rural areas," he added.

Although none could deny that the budget was pro-women, family and rural poor, there are concerns that the allocations would not reach the desired target.

"We hope that the government's proposal will truly apply to its designated targets. In doing this, we hope no one will be discriminated, especially Kelantan and Terengganu (which is currently led by PAS)," said Saupi, who is a Keadilan supreme council member.