SABAH will rely on the federal Pakatan Harapan (PH) government pledge to raise the state’s annual special grant and oil royalty to foot for the growing expenditure of setting up three new ministries.

Under the new PH deal, Sabah will get 50% revenue sharing and oil royalty 5% to 20% from the federal government.

Chief Minister Mohd Shafie Apdal said talks with the federal government on the entitlement will remain the Sabah’s top list of commitment.

“The creation of the Health and People’s Well-being Ministry, Education and Innovation Ministry and the Law and Native Affairs Ministry are definitely timely, although, the state expenditure will increase from the additional responsibility.

“To foot for the extra spending, the government will take steps to improve its revenue collection and financial position, as well as continue negotiating with federal to revise the special grant rates and oil royalty,” he said in his winding-up speech at the Sabah State Assembly today.

The new ministries also comes under the devolution of powers with the executive on health and education comes under the federal government previously.

Shafie said this in response to the issues raised by the Bingkor Assemblyman Dr Jeffrey Kitingan on the state’s 40% special grant entitlement.

Yesterday, the Parti Solidariti Tanah Airku president said he will file a fresh motion to the state assembly if the Warisan-led government drags its feet on the state rights issue.

Under the Tenth Schedule, Part IV of the Federal Constitution, Sabah is entitled 40% of the net revenue deriving from the state.

The federal government ceased paying the special grant since 1974.

According to Shafie, the Sabah remains committed on the state rights issue and considering the use of the special rights revision committee to restart talks on the issue.

“We are still studying whether this committee should be activated to restart talks with the federal on this matter,” he said referring to the committee which was once chaired by former Special Tasks Minister Teo Chee Kang.

The committee was established as a government to government platform to discuss on the state loss rights under the previous Barisan Nasional government.

On the state financial position, Shafie said the government fund now stood at RM3.3 billion while liabilities stood at RM3.87 billion, with RM2.87 billion being federal government loan and RM1 billion issued bonds.

The state government has no overdue payments to the federal but need to pay back the issued bonds in bullet payment on December 9, 2019. – July 5, 2018.