Road to Better Future: A Malaysia's Parliamentary Budget Office?

1.      In today’s morning BFM radio, the announcers discussed over an interesting topic. Apparently, the Chairman of Public Account Committee (PAC), Datuk Nur Jazlan Mohamed, the Pulai’s MP advocates the establishment of Parliament Budget Office, aimed to provide advisory services for the MPs in scrutinizing the budget. This office, he said is not under the executive branch of our Government, but solely under the authority and funded by the Legislative, the Malaysian Parliament.

2.      He concocted that, having such office will improve our MP’s debate quality through independent reports and a reference point for MP in the matter of our Government’s expenses and also overseeing lots of mega-projects planned by the Government.

3.      Personally, I applauded the idea and I support whole heartedly. It is an element of mature democracy and provides the people, better information and empower all our MPs to voice up matters that affect their constituency at best. I had this conversation before during my MBA study. One of my classmate, now working as top brass in the Treasury, have actually written his project paper/thesis on this matter. We discussed and talk various models applied elsewhere such as in the UK, US and other Westminster’s styled democracy.

4.      Why Parliamentary Budget Office? Some will argue that having PAC is sufficient and adding more bureaucratic functions in budget process will not improve efficiency and slow things down. Well, first one must understand that the PAC is merely a committee that oversee post-budget expenditure. After a budget resolution is approved by both Houses, PAC will serve as people’s eyes and ears so that, all planned expenses will be done diligently and benefited the people.

5.      However, in our Malaysian styled democracy, a parliamentary office to oversee the pre-budget process does not exist. All pre-budget process is done by the National Budget Division under the Treasury Department of Ministry of Finance. They act as the principal office which conduct last year fiscal assessment, drafting, consultations with stakeholders and expert references. There is no avenue to empower our MP, who are our direct representations in the Government. One must know that the power to withdraw money from the Kumpulan Wang di Satukan is not the Treasury but an act of parliament, approved and passed by our MPs.

6.      Therefore, part of mature democracy is where we empower our MPs to scrutinize the budget. If they rejected the notion, then don’t blame us, the people, who will write in our blogs, social media pages and newspapers. Don’t be mad at us because we do the job that supposed to be yours

7.      According to Organisation of Economic Cooperation and Development (OECD), such office is seen as a way to; Address bias towards spending and deficits, and more generally enhance fiscal discipline; Raise quality of debate and scrutiny and; promote transparency and accountability.

8.      In the US for example, US Congressional Budget Office (CBO), established in 1947 as part of the Congressional Budget and Impoundment Control Act by which congress sought to reassert its constitutional “power over the purse” (read: Kumpulan Wang Di Satukan) and create more coherent congressional budget process. It is mandated to provide NONPARTISAN, objective budgetary and economic information to the US Congress. Physically, the CBO offices are separate from the US Congress with 250 strong staff and USD 45.5 Million as budget.

9.      Another good example is the Canadian Parliamentary Budget Office (PBO). It is established in 2008 under the Federal Accountability Act in response to concerns around the credibility of government economic and fiscal forecasts, cost overruns in government programs and transparency issues. Armed with 13 staffs and an internal budget of CAD 2.8 Milion, it is mandated to provide independent analysis to Parliament on the state of the nation’s finances, the Government estimates and trends of the Canadian economy; and upon request from a committee or parliamentarian, to estimate the financial cost of any proposal for matter over which Parliament has jurisdiction.

10.   However, despite the benefits of having our own Malaysian PBO, I have to agree with my mentor/friends at the Treasury that the whole parliamentary budget processes also must be reviewed and upgraded. We don’t have our Ways and Means committee in both of our houses, to approve any proposal for tabling the budget. Put aside the issue of efficiency and fast actions. What we need now is a transparent, prudence and diligent processes since we are dealing with Billions of Tax-Payer money, my money, my parent’s money and my friends, Datuk Nenek, Pakcik Makcik, Abg Kakak’s monies.

11.   Therefore again, I hope such proposal by our PAC Chairman should be noticed and debated at national scale. The Youth, should strongly support this idea. We, the Youth must remember our responsibility as concerns citizens, future caretaker of this great nation’s affairs and protector of our posterity’s future. I as the candidate for Parlimen Belia Malaysia, will pursue this matter diligently as I believe from my knowledge and experience, it will benefit not just me, but my children’s children.

Concerned Youth

Azwan O