DAP has described the 2008 Budget as an "unusual one" with a mix of "confused priorities" and "mismatch objectives".

The budget, delivered by Prime Minister Abdullah Ahmad Badawi yesterday, featured a home-financing scheme to ease home ownership by Malaysians.

The government is also allowing monthly deductions through the Employees Provident Fund and reduce stamp duties to achieve this.

The budget also cut costs by removing school fees and reduced costs for textbooks and uniforms for parents.

Several expected policy announcements however, did not materialise. The Goods and Services Tax (GST) was not mentioned. Neither was an anticipated cut in personal income tax.

DAP however felt the budget indicated that the general election is drawing near. The government has denied this.

"The main thrust of the budget was aimed at enhancing the nation's competitiveness, strengthening human capital development and ensuring the well-being of all Malaysians," said DAP secretary general Lim Guan Eng in a statement today.

"Instead we have a confused election budget that will neither spur economic growth nor ensure prosperity for all and not strengthen the nation's competitiveness and human capital development," he said.

Alleviate public anger

Lim said an indicator that elections was near was the increase of 10.9 percent from the 2007 budget, to RM176.9 billion. The budget deficit will be reduced to 3.1 percent of the GDP in 2008 from 3.2 percent this year.

"Another sign of an election budget is for the first time, there is no increase in 'sin taxes' for alcohol and tobacco and the cancellation of school fees up to secondary education level together with free textbooks," said Lim.

"The RM6 billion for the police to fight crime and increase in monthly allowances for the unfortunate point is meant to alleviate public anger at the government's mishandling of public safety and poor governance," he added.

Lim said there was no mention of efforts to establish the Independent Police Complaints and Misconduct Commission (IPCMC) to fight corruption and inefficiency in the police.

"The savings of an average of RM100 a year on school fees, RM60 on exam fees and RM300 on books is helpful but would not greatly reduce the financial burden of rising prices. Prosperity can only be enjoyed by all by giving direct money grants to the poor and disadvantaged as Singapore had done," said Lim.

He proposed an 'bonus' for all Malaysians for families with a monthly income of less than RM3,000.

The 'Malaysia First Bonus' of RM1,200 a year to Malaysians (a family would receive RM2,400 regardless whether the spouse is working) with income not more than RM3,000 per month. For the elderly above 60, they will receive an additional 'Senior Malaysian First Bonus' of RM1,000.

"These bonuses will only cost RM9.3 billion, far less than the RM76.3 billion in gross profits earned by Petronas last year," he said.

Strengthen the social security

Lim said the budget could not spur economic growth as the government has yet to open up government procurement to non-bumiputera contractors sharing a joint-venture with bumiputera contractors.

"We are still waiting for Abdullah to lift the ban on non-bumi contractors so that RM46.8 billion of infrastructure works under the Ninth Malaysian Plan is available to all.

"The miserable RM1.8 billion or 4% over five years given to non-bumis is far below the 35% non-bumi population in the country and demonstrates how the NEP continues to exclude and divide Malaysians based on race.

"Abdullah will only convince Malaysians that his policies will be fair and equitable to all communities by ending the NEP and open up government procurement to all Malaysian contractors.

Lim proposed that 50 percent of oil and gas revenues be invested in human capital and research and development, while another 25 percent be used to strengthen the social security for Malaysians who are in need.

"This will help to build the necessary economic capacity for Malaysia to ensure that the increases in productivity and innovation will more than compensate for the expected decline in oil revenues," he said.