KOTA KINABALU, July 5 — The new Sabah government will continue efforts to claim its rights from the Federal government, including a 40 per cent entitlement to revenue derived from the state.
Chief Minister Datuk Seri Shafie Apdal said it would abide by its manifesto in the recent general election and follow through with its promise to seek more autonomy from the Federal government.
“My administration will continue with efforts to negotiate with the Federal government in accordance with our commitment in the GE14 manifesto.
“I have been informed by my officers in the Finance Ministry that a special committee to review the special grants was formed as a platform for the state and federal governments to discuss this further and in detail,” he said in his winding up speech at the State Assembly sitting here today.
Shafie said his government is currently reviewing the platform to see if it could continue with discussions.
Sabah’s entitlement to the Special Grant under the Tenth Schedule, Part IV of the Federal Constitution accords the state an annual amount equivalent to 40 per cent of the increase in the net revenue derived by the Federation from the State.
A special panel, mooted by the previous administration, and helmed by former Special Tasks Minister Datuk Teo Chee Kang sought to return the revenue to the state.
Meanwhile, Shafie said the state funds stood at RM3.3 billion, while its liabilities stood at RM3.87 billion.
“The working capital of the state government is sufficient to manage the daily payments needed. The State’s liabilities consists of federal government loan of RM2.87 billion and issued bonds of RM1 billion as of 31 December 2017.
“As of now, the State government has no overdue payments to the federal government. The State has to pay back the issued bonds of RM1 billion in a bullet payment that is due on 9 December 2019,” he said, adding that the state is allocating RM150.7 million each year to the Federal government.
Shafie said the state’s plan for the next fiscal period was to plan spending that does not amount to more than its revenue.
“We can discipline ourselves and create a controlled and good financial standing,” he said.