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KOTA KINABALU: Sabah has unveiled a surplus RM5.701bil state budget for 2024 that is focused on addressing key immediate needs, especially basic infrastructure and amenities.
The proposed budget tabled at the state assembly yesterday by Sabah Finance Minister Datuk Seri Masidi Manjun also seeks to increase and strengthen the growth of key sectors such as agriculture and tourism.
It also aims to develop human capital by strengthening knowledge, skills and spiritual values to foster a strong self-identity, he said in tabling his first state budget after being appointed Finance Minister in January.
Masidi said the focus was on addressing socioeconomic gaps and improving the people’s standard of living through various initiatives geared towards inclusivity and equality.
He said basic infrastructure, public amenities, maintaining roads and slopes, and rehabilitating rivers in flood-prone areas were among key areas under the budget that will be channelled through various state ministries.
He said the state kept to a conservative estimate on its revenue amounting to RM5.737bil for next year, which means a surplus of RM35.87mil.
Masidi also said despite the price of petroleum and commodities dropping in 2023, they were still expected to get RM6bil in revenue for this year.
“The state’s revenue in 2024 is expected to decline due to the uncertain geopolitical and economic climate, affecting the price of commodities in the global market,” he added.
The bulk of Sabah’s revenue for next year will be from the state sales tax from commodities and petroleum amounting to RM2.49bil, while revenue from land rent (RM103mil) as well as port and harbour dues would amount to RM42.5mil.
Sabah expects to receive non-tax revenue of RM2.372bil comprising petroleum royalty (RM1.3bil), sales of water (RM300mil), interest on its cash balance and short-term deposits (RM201mil), land premium (RM150mil), dividends (RM143.7mil), and forest produce royalty and export on timber products (RM133mil).
Some RM729.1mil will come from non-revenue receipts comprising reimbursable receipts and contributions from the Federal Government as well as other receipts.
Masidi said the state would continue its efforts to increase its revenue and under next year’s budget, would be implementing the State Sales Tax Special Voluntary Disclosure Programme for the payment of two products, namely fisheries commodities as well as scrap metal and waste taken out of Sabah.
“I urge the relevant firms to voluntarily step forward for licence registration and to declare taxes in compliance with the State Sales Tax Enactment 1998,” he added.
He said the state would also enhance enforcement to collect outstanding revenues and address leakages with assistance from the Malaysian Anti-Corruption Commission, Malaysian Palm Oil Board and Customs Department in state sales tax collection.
Masidi also said the state would explore potential new sources of revenue and continue its claims with the Federal Government on Special Grants under the Federal Constitution.
Also under the budget, state civil servants including government contract workers and part-time workers will receive a special assistance payment of RM2,000 in line with the announcement of the federal Budget 2024.Masidi said that the first payment of RM1,000 would be paid in January and the second payment would be made during Hari Raya in April.
