SABAH has proposed a RM4.16 billion state budget focused on driving people-based economic growth, with the state government eyeing RM4.27 billion in revenue next year.

Chief Minister Mohd Shafie Apdal said the state government anticipates a surplus of RM105.32 million.

The allocation is RM40.43 million or 6.31% more than the previous budget.

“To ensure the state government runs smoothly, RM4.156 billion will be allocated for supply. This is an increase of RM55.33 billion compared with the budget for 2018,” said Shafie.

“RM1.371 billion will be allocated for recurring expenditure, which is RM71.09 million more than the amount allocated in the previous budget.

“The state government also proposes a special expenditure of RM2.045 billion, which is an increase of RM5.77 million or 0.28%.”

Shafie, who is also state finance minister, said RM742.14 million will be for emolument, a decrease of RM21.53 million.

“Among the reasons for the smaller allocation are retirement and a lower salary for new hires.”

On recurring expenditure, he said there is an increase of RM71.09 million, with the additional funds to cover the operating costs of new state ministries, namely the Education and Innovation Ministry, Health and People’s Well-being Ministry, and Law and Native Affairs Ministry, as well as for the establishment of the Kalabakan District Office.

Shafie said the state government will be prudent in its spending and plug leakages, in its efforts to ensure the revenue collection target is met.

He said the target of RM4.265 billion will be derived from taxes, non-tax revenue and other sources.

“Of the total, RM1.125 billion will be from taxes, RM2.735 billion from non-tax revenue and RM403.5 million from other sources.”

He said petroleum will account for 37.5%, or RM1.6 billion, crude palm oil (RM900 million) and the sales tax (RM60 million).

The state government also aims to generate RM330 million from the Sabah Water Department, land and survey (RM285 million), and wildlife and veterinary (RM24 million), he said.

“The state government will start collecting the sales tax on exported fisheries commodities at a rate of 5% next year. The collection is estimated at RM20 million.“

Among the highlights of the 2019 state budget is an increased allocation for scholarships, bursaries and financial assistance for students.

“This allocation, which is now placed under the state Education and Innovation Ministry, has increased by RM15 million to RM52 million from the previous RM37 million.”

Shafie said RM35 million has been allocated for the development of religious and non-Muslim institutions, as well as mission and private schools.

Such schools will get RM15 million, which is an increase of RM3 million, he said.

“The state government has also allocated RM24.45 million in special funds and loans to encourage entrepreneurial development among youth.

“We are confident that the provision will boost the activities of small and medium enterprises in Sabah.” – November 9, 2018.