Subsidy or Responsibility?

The government’s calculation of subsidy figures should exclude services such as healthcare and education says the Federation of Malaysian Consumers Association (Fomca).

Fomca secretary general Muhammad Sha’ani Abdullah said he was given by government think tank Pemandu a breakdown of the RM74 billion that showed social services (health, welfare, education and scholarship) making up RM42.8 billion, fuel (petrol, gas and electricity) making up RM23.5 billion, infrastructure (toll, rural air services and rail) making up RM4.6 billion and food (sugar, flour, fisheries, rice and oil) making up RM3.1 billion.

What is a subsidy?

A grant made by a government to some individual or business in order to maintain an acceptable standard of living or to stimulate economic growth. - The American Heritage® New Dictionary of Cultural Literacy, Third Edition

Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest -  The American Heritage® Dictionary of the English Language, Fourth Edition

Given the dictionary definition of subsidies, I am disappointed that Pemandu grouped social services such as welfare, health and education under the category of subsidies. The public pays taxes and one of the uses of taxes is to provide basic necessities to the poorer segments of the society. The government is obligated to spend the tax revenue on welfare, education and health services. It should NOT be considered as a monetary assistance or grant. The public deserves those services, it’s their right and it is not right for the government to portray that they are doing the public, the taxpayer a favour by providing welfare, health and education services.

Somebody should tell Pemandu that subsidies are normally given to enterprises in order to enable a larger section of the society to maintain a decent standard of living. Health and education are public services provided by the government, so who gets the subsidies then? The provider of welfare, education and health services, i.e. the government. Who gives this so-called “subsidies”? The government. So, the government is subsidising itself? 

Who ‘drives’ this Pemandu think tank? Is he/she/they thinking?

About Pemandu [http://www.transformation.gov.my]

Performance Management & Delivery Unit (PEMANDU) was formally established on September 16, 2009 and is a unit under the Prime Minister’s Department. PEMANDU’s main role and objective is to oversee implementation and assess progress of the government transformation programme, facilitate as well as support delivery of both the NKRAs and MKRAs. Chairman of the PEMANDU board is YB Senator Tan Sri Dr. Koh Tsu Koon, Minister in the Prime Minister’s Department, in charge of National Unity and Performance Management. The post of Deputy Chairman and Chief Executive Officer of PEMANDU is held by Minister in the Prime Minister’s Department, YB Senator Dato’ Sri Idris Jala.

While the responsibility for end-to-end delivery of NKRA and MKRA outcomes ultimately rests with the respective ministries, PEMANDU has been mandated to catalyse bold changes in public sector delivery, support the ministries in the delivery planning process and provide an independent view of performance and progress to the PM and ministers. To allow PEMANDU to carry out its responsibilities effectively, it combines the best talent from both the civil service and private sector.