Bersama’s budget proposal is a breath of fresh air

Bersama's 2027 budget proposal offers a refreshing perspective on fiscal responsibility and social reform. Former economy minister Rafizi Ramli and economics lead Sum Dek Joe outline a 10-year plan to achieve a balanced budget and a "generational new deal." The proposal projects 5.2% GDP growth in 2026, a 3.5% fiscal deficit of GDP, and a federal debt of 64.9% of GDP.

By 2031, the budget aims to reduce the fiscal deficit to 1.8% and the federal debt to 56.4% of GDP, with a surplus by 2035. The proposal emphasizes direct social security reform, broadening the tax base, and earmarking specific revenues for public needs. The most innovative idea is the retail electronic payment tax (REPT), which is projected to generate RM9.1 billion annually.

The budget also proposes a universal child allowance, a universal cost of living allowance for B60 households, and a universal basic pension in two tiers. The budget introduces structural checks through an independent public finance commission (PFC) to ensure accountability and prevent debt transfer to future generations. Critics claim that cutting fuel subsidies harms ordinary people, but Bersama demonstrates that targeted allowances outweigh the loss of bulk subsidies.

Overall, Bersama's budget proposal provides a realistic, courageous blueprint for fiscal responsibility and social justice.