DANAVEST

Budget 2009 to be tabled on Friday, Aug 29 looks like being the most testing yet for Finance Minister Datuk Seri Abdullah Ahmad Badawi.

It is as much about balancing the book as delivering the country from tough global economic conditions and ensuring the survival of industries, preservation of jobs and reining in cost of living.

It is also about living up to people’s expectation with pragmatic solutions to their problems — solutions that will surely be put to severe test in parliament by the Pakatan Rakyat, which represents five state administrations.

But first, it should be noted that Budget 2009 is the first federal budget proposals to be tabled in August, fully four months from the actual fiscal year. Given the long interval, it is difficult to imagine how much of the Budget — its thrusts and key numbers — would still stick to the head when 2009 finally arrives.

Being tabled early also means many of the assumptions made in the preparation of the proposals could be wildly inaccurate, particularly those relating to input costs.

Even though the Budget is just a set of proposals, and proposals are always subject to alteration, its contents should reflect as accurately as possible the conditions they seek to represent. The data and information used must be up to date.

Certainly this would help to reduce the amazingly large amount of additional allocations often asked by the various ministries mid-May through the fiscal year.

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