SARAWAK Chief Minister Abang Johari Openg today announced a RM8.22 billion deficit budget for next year, which will be largely spent on developmental projects for the state.

“Sarawak, being a developing state, has to continue with a development-biased budget to stimulate a desirable level of economic activities and sustain economic growth during the year,” he said when tabling the state budget today.

A total of RM5.745 billion, or 70% of the budget, is allocated for development, with the remaining RM2.481 billion earmarked for operating expenditure.

Of the RM5.745 billion, RM3.063 billion, or 53%, will go to the development of rural areas.

In 2016, RM2.65 billion was spent on rural development, while RM2.982 billion was allocated for this year.

Abang Johari said the continued efforts for rural development was vital towards achieving the state’s development objective of “opening up greater opportunities in rural and remote areas for economic prosperity”.

The budget is Abang Johari’s first since becoming chief minister following the death of his predecessor, Adenan Satem, last February.

The budget has six key strategies that Abang Johari said were aimed at achieving “a greater and more balanced economic development and to support a desired level of economic growth, as well as to give priority to digital economy”.

He also said the money for development would go to priority projects such as digital economy initiatives and “commitment to completing the implementation of ongoing projects as well as the capacity to implement projects during the year”.

The digital economy is a new economic sector created by Abang Johari to drive the state’s digital economy agenda that includes the building of digital infrastructure, putting in place a digital government and undertaking digital talent development, research and development.

The RM2.481 billion for operating expenditure is an increase of RM275 million, or 12%, from the approved expenditure of RM2.206 billion this year.

A total of 31%, or RM772 million, is for personnel emoluments, 35% or RM860 million for supplies and services, 32% or RM802 million for grants and fixed payments, with the remainder for procurement of assets.

Abang Johari said the 2018 budget would register a deficit of RM256 million, as the state’s expected revenue is projected to be around RM5.525 billion, while its expenditure is estimated to be about RM5.781billion.

He said the state’s revenue has been on a declining trend since 2015 due to falling oil and gas prices and reduced revenues from forestry and dividend income, while expenditure was on a rising trend. – November 8, 2017.