Sabah Tables Rm4 3b Budget For 2021

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The Sabah state government today tabled its budget for 2021 amounting to RM4.3 billion, which focuses on achieving sustainable economic growth for the people’s wellbeing.
Chief Minister Hajiji Noor when tabling the first budget for the Gabungan Rakyat Sabah (GRS) government, said it was drafted based on the state’s government’s aspirations and commitment to further develop Sabah and achieve success.
He said Sabah is projected to collect RM4.48 billion in revenue next year, generating a surplus of RM178.7 million.
“It is an increase of seven percent or RM289.54 million from this year’s budget of RM4.19 billion.
“Sales tax payments on petroleum products is expected to be the largest contributor to the total revenue at RM1.25 billion or 27.9 per cent,” he said at the Sabah State Legislative Assembly sitting in Kota Kinabalu.
Hajiji said the Covid-19 pandemic has had a significant impact on the state’s revenue collection for this year when it is expected to decrease by 17 percent to RM3.47 billion compared to the original projection.

Sabah Chief Minister Hajiji Noor
“It is due to lower production and average crude oil prices. For this year, Sabah only recorded RM1.13 billion in petroleum royalty collection compared to the original projection of RM1.7 billion,” he said.
He said the revenue collection from sales tax on crude palm oil is projected to decrease to RM793 million compared to the original forecast of RM825 million due to lower production despite the prices being at a good level.
Hajiji said the RM4.3 billion budget allocation would be distributed for emolument payments, recurring expenditure and special expenses.
“A total of RM736.65 million will be allocated for emoluments, a decrease of RM2.94 million or 0.40 percent compared to this year which is contributed by the civil service rationalisation exercise,” he added.
Hajiji said the RM1.6 billion allocated for recurring expenditure was an increase of RM106.98 million or 7.15 percent from this year’s projection of RM1.49 billion.
“It is contributed by the increase in railway maintenance, administration of sports development, recurring programmes under the Public Works Department, water production operations and the establishment of the Sabah Sewerage Services Department,” he said.
He said RM1.96 billion was allocated for special expenses, an increase of RM55.36 million or 2.9 percent compared to this year’s allocation of RM1.9 billion.
“The increase is due to the allocation provided for the Covid-19-related and post-pandemic assistance as well as contributions to cover the shortfall of the Trust Fund,” he said.
Meanwhile, Hajiji said RM964.15 million was allocated for development expenditure, adding that it includes the RM231.05 million allocation from the federal government.
The motion was later seconded by Deputy Chief Minister Bung Moktar Radin (BN-Lamag) before speaker Kadzim M Yahya adjourning the sitting until next Monday.

- Bernama

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