The Malaysian alternative federal budget for the 2016
fiscal year
A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
was launched by
Pakatan Harapan
The Alliance of Hope ( ms, Pakatan Harapan; abbrev: PH; stylized as HARAPAN) is a Malaysian political coalition consisting of centre-left political parties which was formed in 2015 to succeed the Pakatan Rakyat coalition. It has been the r ...
on 21 October 2015, two days before the Malaysian Budget Day, as a response to the government's federal budget.
Areas of direction
Some of the key items in the alternative budget were:
* Implementing the
capital gains tax
A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, Bond (finance), bonds, precious metals, real estate, and property.
Not all count ...
since this is also being implemented in 127 countries, including all European countries which are part of the
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
.
* Implementing the
inheritance tax
An inheritance tax is a tax paid by a person who inherits money or property of a person who has died, whereas an estate tax is a levy on the estate (money and property) of a person who has died.
International tax law distinguishes between an es ...
since many
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
members already implemented.
* Restructuring of 1Malaysia Development Berhad (1MDB) by putting the firm into administration and prosecuting wrongdoers.
* Separation of
Prime Minister
A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is not ...
and
Finance Minister
A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation.
A finance minister's portfolio has a large variety of names around the world, such as "treasury", " ...
portfolios to avoid excessive concentration of power held by one individual.
* Support extension of
Zeti Akhtar Aziz
Ungku Zeti Akhtar binti Ungku Abdul Aziz (born 26 August 1947) was the 7th Governor of Bank Negara Malaysia, Malaysia's central bank. She served as Governor from 2000 to 2016, and was the first woman in the position. Zeti was one of the members o ...
's term as Bank Negara Malaysia governor by two more years.
* For a short term, keeping Goods and Services Tax (GST) system by zero-rating all items to mitigate inflation.
* To set up a petroleum endowment fund for East Malaysians.
* The Kuala Lumpur-Singapore high speed rail (HSR) project funds will instead be reallocated to building a rail network in Sabah and Sarawak.
* Offset the loss of GST income by making MYR30 billion in savings by stamping out "wastage and corruption", and also by shutting down several state-linked corporations.
* Reducing
PETRONAS
Petroliam Nasional Berhad (National Petroleum Limited), commonly known as Petronas, is a Malaysian oil and gas company. Established in 1974 and wholly owned by the Government of Malaysia, the corporation is vested with all oil and gas reso ...
dividend to MYR20 billion.
* Revamping cash handouts such as Bantuan Rakyat 1Malaysia (BR1M) to be conditional on employment and school attendance; the low-income parents must work and send their children to schools.
* Focusing more on agriculture because the country's agricultural policies were “backward, if compared with other countries”; it is necessary to give the subsidies directly to the farmers and also provide a subsidy for the price of rice.
* Parliamentary oversight of sovereign wealth funds for greater accountability, accountability and full independence of regulators which include the
Malaysian Anti-Corruption Commission
The Malaysian Anti-Corruption Commission ( ms, Suruhanjaya Pencegahan Rasuah Malaysia), abbreviated MACC or ''SPRM'', (formerly known as Anti-Corruption Agency, ACA or ''Badan Pencegah Rasuah'', ''BPR'') is a government agency in Malaysia that ...
Bank Negara Malaysia
The Central Bank of Malaysia (BNM; ms, Bank Negara Malaysia) is the Malaysian central bank. Established on 26 January 1959 as the Central Bank of Malaya (''Bank Negara Tanah Melayu''), its main purpose is to issue currency, act as banker and ad ...
and
Parliament of Malaysia
The Parliament of Malaysia ( ms, Parlimen Malaysia) is the national legislature of Malaysia, based on the Westminster system. The bicameral parliament consists of the Dewan Rakyat (House of Representatives, Literal translation, lit. "People's A ...
.
* Focus in bridging the economic activities' gap in Peninsular Malaysia and those in Sabah and Sarawak.