Sabah tables RM4.3b surplus budget

 By Olivia Miwil - December 18, 2020 @ 6:35pm

Sabah Chief Minister Datuk Hajiji Mohd Noor (right) with his deputies (from left) Datuk Dr Jeffri Kitingan, Datuk Dr Joachim Gunsalam and Datuk Bung Moktar Radin showing the state Budget 2021 text speech before the state assembly sitting here today. - Bernama photo.

KOTA KINABALU: The Sabah government today tabled its RM4.3 billion 2021 Budget with a surplus of RM178.70 million.

Sabah Chief Minister Datuk Seri Hajiji Noor said the budget, themed 'People's Prosperity, Sustainable Economy', was based on the government's aspirations and commitment to instill noble values and responsibility among the people for the state's development and success.

Hajiji, who is also state Finance Minister, said this will also reflect the reality of the Covid-19 pandemic on the people and will include strategies and approaches to assist and regenerate the people's economy.

Tabling the budget at the state legislative assembly sitting, he said the state's revenue next year was projected to be RM4.8 billion, thus leaving the budget with a RM178.7 million surplus

He said despite the pandemic, the state government will continue to strengthen and maximise the state's revenue collection through other initiatives such as enhancing collection from existing resources, improving sales tax collection and identifying new revenue sources.

They include the petroleum products sales tax which would be the biggest contributor to the state revenue with an estimated collection of RM1.25 billion.

This is followed by crude palm oil (RM787.5 million), land lease (RM88m), ports and harbours taxes (RM49.34m), as well as petroleum royalty (RM911m), among others.

Other contributors are sales of water, interest and returns on investments, as well as land premium with an estimated collection of RM300m; RM227.6m and RM146m, respectively.

Federal government grants are also a main contributor under Non-Revenue Collections with a contribution of RM455.89 million, approximately 10 percent of the total revenue estimates for 2021.

The 2021 Budget also sees an allocation of RM931.21 million for the development of three main productive sectors which are agriculture, tourism and industries.