Budget 2021: A Walk into the Unknown?

As the debate over the 2021 Budget rages on in Parliament, we are faced with a possible outcome that has not been on the table for at least my own lifetime: the likelihood of a Budget Bill that is voted down by Parliament.

Firstly: how likely is this? The Government was clearly anxious enough about the likelihood of this Budget passing through Parliament, that it actually triggered the option of an Emergency (which was thankfully rejected by the Yang Di-Pertuan Agong). Instead, the Ruler exhorted all parliamentarians to set aside party affiliations, and lend their support to the Budget Bill, keeping in mind the ongoing economic carnage that has been wreaked by a global pandemic that is raging unabated.

And yet, the Agong’s call has been left unheeded. 

Parties on both sides of the aisle – in weighing their own political interests – have made their own demands on the Budget, raising the spectre of a rejected Budget

On the part of the Government, they have not yet fully given up on the hopes of triggering an Emergency; sprinkled throughout the daily newspapers over the past few days are the comments of various rent-a-quote professors, eager – no doubt – to ingratiate themselves with those in office by recalling their so-called merits of an Emergency that would allow a Budget to sail through unmolested. 

The more interesting question is: what happens if the Budget is not passed? The responses have been interesting. 

Finance Minister Tengku Zafrul have raised the possibility that civil servants might not get paid if the Budget is not passed. (This is technically correct: a failed Budget Bill could lead to a government shutdown, if the appropriate sums to run the day-to-day operations of the Government cannot be appropriated.

What the Finance Minister has left unsaid, and which DAP leaders have been (almost gleefully) pointing out, is that a failure to pass the Budget Bill will likely, based on Westminster convention, lead to the fall of the Perikatan Nasional government. A new Prime Minister needs to be appointed, and the Government formed by that Prime Minister will need to pass a Budget Bill in Parliament. 

It is this grim outlook for the Government that has led many within the Perikatan government to still raise the option (almost longingly) for an Emergency, so that a Budget could be passed without the Government of the day incurring the risk of stepping down. 

Personally, I don’t think an Emergency would be likely, or desirable. Could the Government fall? I would give it a 30% probability that something like this could happen. More likely is that some sort of last-minute compromise would be cobbled in order to come to a Budget that enough Parliamentarians would deign to vote for. 

The alternative may well be uncharted waters for Malaysian democracy!