FINANCE Minister Lim Guan Eng last night refused to answer questions on his claim that Sarawak’s billion ringgit annual budget would make the state bankrupt in three years.

Lim, who is also DAP secretary-general, had said earlier in his address at the party’s ‘Sarawak! Here we come’ dinner in Kuching  that if Sarawak’s annual budget stays at RM11 billion for the next three years, then it could wipe out the state reserve of RM30 billion.

“That’s simple mathematics (and) I’m just using an analogy,” was his initial reply to questions at the end of the function.

When asked this meant that the federal government will not honour Sarawak’s right to impose the 5% sales tax on all petroleum products sold in the state, Lim didn’t answer and walked away.

Sarawak had started imposing the tax, which is allowed under Schedule 10, Part V (7) of the federal constitution, from January 1.

The petroleum tax is estimated to make upp RM3.89 billion, or 37%, of Sarawak’s total estimated revenue this year of RM10.51 billion.

Chief Minister Abang Johari Openg had told lawmakers when tabling the budget in November that the state does not have to dip into the RM30 billion reserve.

In his speech last night, Lim accused Gabungan Parti Sarawak’s (GPS) government of mismanaging the state’s economy.

“In three years you got nothing left. Sarawak will end up like Kelantan, begging the federal government for money,” he said in reference to the PAS-ruled state’s appeal to Putrajaya for RM20 million to pay state civil servants.

“GPS and PAS don’t know how to manage the economy until they go bankrupt.”

He said it is important for DAP “to teach the GPS state government a lesson and win Sarawak”. – June 22, 2019.