KUALA LUMPUR: Former prime minister Tun Dr Mahathir Mohamad (pix) has warned that there will be dire consequences for the country if the just tabled Budget 2022 is passed.
“It is the most bloated in the country’s history and this will lead to a massive debt,” he said.
A record RM332.1 billion has been allocated for next year’s budget while the government’s revenue is expected to amount to only RM234 billion. The additional RM98 billion will be financed through borrowings.
Mahathir described the situation as “worrying”.
With no attempt to hide his sarcasm, he said that if the general election were to be held tomorrow, “the ruling party will take the ‘big cake’ because the budget allocates more money to almost everyone and every quarter”.
He also asked how the government would obtain the additional RM98 billion to meet the targeted allocation.
He added the nation is already in debt of more than RM1 trillion. “With this new debt, the amount will rise further.”
Mahathir said raising the debt ceiling to 65% will not reduce the quantum of the government’s debt. “It will take decades to pay off this debt.”
He advised the government to be cautious in its spending so that the debt burden would not be passed on to future generations.
“We should not take pride in announcing the largest budget in the country’s history because eventually, it will lead us to our biggest debt,” he added during the budget debate.
He said the current government should, in fact, be more careful so it does not create a burden for future governments.
“In the budget, there is no mention of reducing spending. There is (actually) a possibility of reducing the allocation.”
Mahathir also alleged that a culture of corruption has led to the increase in government allocations.
He said unimportant positions are being created only to have the holders of these offices support the ruling party.
“They are given the status of ministers so that they can be paid higher income. As a result, the budget allocation has to be raised, and our debt will increase.
“The cost that will be borne by the government will then be raised. This culture of corruption is back.”
He expressed hope that the government would revise Budget 2022 to avoid falling into a bigger debt trap.
