KUCHING, Nov 5 ― The Sarawak government presented today its largest ever state budget at RM11.9 billion for 2019, ahead of a tough state election due in 2021 for the ruling Gabungan Parti Sarawak.

Sarawak Chief Minister Datuk Patinggi Abang Johari Openg from Gabungan Parti Sarawak said the state’s 2019 Budget will be development-based and rural-focused to stimulate economic activities and progress for the state.

"In the Budget 2019 proposal, a substantial allocation of RM9.073 billion is provided for the development expenditures. This represents about 76 per cent of the total budget while 24 per cent or RM2.841 billion is for operating expenditure,” he said when tabling the state budget 2019 in the state legislative assembly here.

Abang Johari, who is also the state Finance and Economic Planning Minister, said out of the total development fund, a sum of RM6.049 billion or 67 per cent allocation will be provided for the development of rural areas.

"This provision is much higher as compared to RM2.982 billion in 2017 and RM3.062 billion in 2018,” he said.

The chief minister said the total state revenue for 2019 is projected at RM10.513 billion, an increase of RM3.547 billion or 51 per cent as compared to the revised revenue estimated at RM6.966 billion for 2018.

"This will be the first time the state is expected to achieve a record high revenue of more than RM10 billion. This level of revenue is crucial to enable us to move forward with our development agenda for the benefit of all Sarawakians,” he said.

He said the 2019 state revenue estimate is made up of tax revenue expected at RM5.268 billion, or 50 per cent of the total expected revenue in 2019.

He said this will comprise RM4.462 billion from sale tax, RM474 million forestry and RM332 million from raw water and mining royalties, land rents and others.

Abang Johari said the non-tax revenue is estimated at RM4.997 billion or RM48 per cent of the total expected revenue.

He added this will comprise RM1.990 billion from cash compensation in lieu of oil and gas rights, RM1.5 billion from dividend income, RM1.006 billion from interest income, RM250 million from land premium and RM120 million from cash compensation in lieu of import and excise duties on petroleum products.

* A previous version of this story contained an error which has since been corrected.