KUCHING, Nov 4 — Chief Minister Datuk Patinggi Abang Johari Openg today presented a state surplus Budget 2020 which will provide a total sum of RM9.891 billion, of which RM6.597 billion is for development expenditure and the remaining RM3.294 billion is for operating expenditure.
He said the Budget allocation is on the back of the projected revenue of RM10.067 billion for next year.
Abang Johari, who is also state finance and economic planning minister, said the state Budget will be development biased and rural focused.
“The sum of RM6.597 billion proposed for development expenditure represents 67 per cent of the total Budget compared to 33 per cent or RM3.294 billion allocated for operating expenditure,” he said when tabling the state Budget 2020 in the Sarawak State Legislative Assembly.
“In line with our initiatives to transform the rural areas and ensure that no one is left behind in these great efforts, the Budget will continue to be rural-biased.
“A sum RM4.141 billion or 63 per cent allocation will be provided for development in rural areas,” Abang Johari said.
He said the Budget will boost the state development agenda.
“The state will vigorously continue to pursue its development agenda towards achieving a high-income economy by 2030 in our own mould,” he said, adding that substantial funds will be allocated for the provision of basic facilities and amenities including roads and bridges, rural water and electricity supplies, as well as other people-centric projects under the 11th Malaysia Plan (11MP), which will continue under the 12th Malaysia Plan (12MP).
He said these development initiatives will open up new and larger areas, unlock the vast economic potentials of the state and create the critical mass required for greater private sector participation; thereby helping to generate more jobs and business opportunities for Sarawakians.
The chief minister said another focus of the Budget is the digital economy which will continue to be the main enabler in efforts to transform Sarawak into a knowledge-based and innovation-driven economy.
“Sarawak Digital Economy Initiatives will be intensified further through the creation of a comprehensive digital ecosystem, talent development and entrepreneurship culture,” he said.
He said another key thrust of the Budget involves spurring Sarawak’s economic development by broadening its investment base.
“These investments will focus on higher value-added activities in the manufacturing and service sectors, as well as resource-based industries such as oil and gas, agriculture, bio-tech and timber-processing industries.
“On top of the federal investment incentives, the state also offers an attractive incentive package in terms of competitive price of land, competitive electricity tariffs and water rates, low down payment for purchase of industrial land and provision of facilities to ensure a conducive investment climate,” he said.
On the projected revenue of RM10.067 billion for next year, he said RM4.631 billion will come from tax revenue, or 46 per cent of the total.
He said it will consist of RM3.491 billion from the state sales tax of which RM2.878 billion from crude oil, liquified natural gas and other petroleum products; RM445 million from crude palm oil and crude palm kernel oil; RM80 million from lottery, RM58 million from aluminium products while the remaining RM30 million from tyres.
He said a sum of RM600 million comes from raw water royalty; RM413 million from forestry of which RM229 million is expected from forest royalty while RM184 million from timber premium and tariff; and RM127 million from mining royalties, land rents and others.
He said a sum of RM5.188 billion or about 53 per cent of will come from Non-Tax Revenue sources, including RM1.839 billion from 5 per cent cash compensation in lieu of oil and gas rights or royalty on oil and gas; RM1.784 billion from dividend income; RM1.058 billion from interest income; RM250 million from land premium; RM120 million from cash compensation in lieu of import and excise duties on petroleum products; and RM137 million from others, including licences, service fees, permits and rentals.