Malaysia

Finance minister refutes criticism of Budget 2021's Health Ministry allocations

The finance minister said the RM4.29 billion allocation for consumables has been placed under item 080000 (Special Programme)

Updated 5 years ago · Published on 07 Nov 2020 9:47PM

Finance minister refutes criticism of Budget 2021's Health Ministry allocations
Finance Minister Tengku Zafrul Abdul Aziz tabled the much anticipated Budget 2021 yesterday. - The Vibes pic, November 7, 2020

by A. Azim Idris

KUALA LUMPUR – Following public backlash to Finance Minister Tengku Zafrul Abdul Aziz’s tabling of the Budget 2021, he has refuted criticism on the allocation for the Health Ministry.

In a Facebook post tonight, the minister said the RM4.29 billion allocation for consumables has been placed under item 080000 (Special Programme). And this includes Medical Supplies for Government Medical Facilities (RM2.89 billion) and Drug Laboratory Privatisation Concession (RM1.4 billion). 

“This is why the total allocation under item 020000 (Medicine) shows a ‘reduction’ from RM14.2 billion (2020) to RM11.3 billion (2021).

“This includes allocation for nephrology and pharmacy. The truth is: no medical specialties are seeing a decrease in allocation.”

His statement comes after health stakeholders took to social media to point out possible cost-cutting in critical areas, despite the RM1.324 billion bump in allocation for the Health Ministry next year.

Senior consultant paediatrician Datuk Dr Amar-Singh HSS tweeted that the ministry’s pharmaceutical allocation saw a whopping 74% reduction in the Budget 2021 tabling.

He also shared a screengrab showing last year’s allocation of RM1.941 billion slashed to RM512.9 million.

“I am not sure if individuals spotted or understand the implications of this massive 74% drop in Pharmacy allocation?

“When any hospital clinical department is in ‘trouble’ (read ‘short of funds’ for drugs) Pharmacy rescues us. Now this safety net is completely lost.”

Speaking to The Vibes today, Dr Amar-Singh also sighted a 12% reduction in the expenses for paediatric care from RM660.21 million for this year to RM578.87 million for 2021.

He said expenses under Public Health will see a 12% drop to RM4.997 billion next year, from RM5.559 billion this year.

“There are parts of health budget you DO NOT touch! Public Health expenditure is grossly underfunded and now it's cut by 12%!” he told The Vibes in a text message.

“Paediatric service (children) is so limited and poor. Now cut 12%! These areas need an increase. It’s a regressive budget and will damage healthcare for vulnerable, communities and retard prevention activities.”

However, responding Dr Amar-Singh’s tweets, Dr Khor Swee Kheng of the Malaysian Health Coalition, pointed out a shift to the way the allocations are handled for 2021.

“The accounting treatment has changed, which explains this ‘massive drop’,” Dr Khor responded on Twitter.

“This gives a new set of problems, like why move from OPEX (operations expenditure) to DEVEX (development expenditure), how will you procure (items), (and) etc.”

He also questioned certain moves by the Finance Ministry, especially in procuring services under development expenditure through tenders, direct negotiations, treasury instructions, as these were prone to corruption, wastage and fraud.

“Overall, the health budget grows only 4.3% vs 2020. That’s not enough at all!" he said in a Twitter thread.

“It’s inaccurate to say that ‘funding is drastically cut’. The accounting treatment to move from OPEX to DEVEX is unnecessary & confusing, & must be explained by the Govt.”

Meanwhile, former health minister Datuk Seri Dr Dzulkefly Ahmad chimed in on Twitter, sharing an infographic that shows expenses for nephrology being cut from RM252.11 million (2020) to RM56.44 million (2021), cardiothoracic expenses from RM180.5 million (2020) to RM60.11 million (2021), radiotherapy from RM328 million (2020) to RM136.43 million (2021), and general medicine from RM1.73 billion (2020) to RM1.48 billion (2021), among others.

Yesterday, he said the Health Ministry, taking into account expenses raised for tackling the Covid-19 pandemic, was getting RM200 million less next year under Perikatan Nasional compared to this year’s allocation from Pakatan Harapan (PH).

On Twitter, Dzulkefly said although the ministry is seeing an increase of RM1.324 billion (4.12%) in Budget 2021 – from RM30.617 billion in 2020 to RM31.942 billion in 2021 – the deduction of emoluments and payments for contractual staff amounting to RM1.9 billion would mean that the “actual” allocation is at RM30 billion, versus the RM30.6 billion under PH. – The Vibes, November 7, 2020

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