Sarawak chief minister tables surplus State Budget 2021

KUCHING, Nov 9 — Chief Minister Datuk Patinggi Abang Johari Openg today tabled in the Sarawak State Legislative Assembly a surplus State Budget 2021, with an estimated revenue of RM10.012 billion and a total proposed ordinary expenditure of RM9.832 billion.

He said the proposed State Budget 2021 is expected to generate a surplus of RM180 million.

Abang Johari said the anticipated revenue will come from tax revenue totalling RM4.742 billion, including RM3.687 billion from State Sales Tax (SST) of which RM3.034 billion will come from crude oil, liquefied natural gas and other petroleum products.

He added RM505 million is anticipated to come from crude palm oil and crude palm kernel oil; RM80 million from the lottery, RM58 million from aluminium products, while the remaining RM10 million will be from the tyre industry.

“The non-tax revenue is estimated at RM4.994 billion, mainly derived from the following major sources, such as RM1.883 billion from 5 per cent cash compensation in lieu of oil and gas rights or royalty on oil and gas, RM1.8 billion from dividend income and RM822 million from interest income,” Abang Johari, who is also the state minister of finance and economic planning, said.

He said out of the RM9.832 billion proposed for ordinary expenditure, a sum of RM3.832 billion is for operating expenditure while a sum of RM6 billion is proposed for the Development Fund Account to finance the implementation of various development programmes and projects.

“The proposed operating expenditure of RM3.832 billion in 2021 consists of  RM874 million or 23 per cent for personnel emoluments, RM1.269 billion or 33 per cent for supplies and services, RM1.295 billion or 34 per cent for grants and fixed payments which includes operating grants to statutory bodies and local authorities, servicing of public debts and payments of gratuities, pensions, scholarships including financial and welfare assistance under BKSS,” he said.

He added RM73 million will be for the procurement of assets and RM321 million for other operating expenses.

The chief minister said a sum of RM6.304 billion is proposed under development expenditure estimates for 2021 to finance various programmes and projects.

“This estimate has taken into consideration, amongst others, the commitment to complete the implementation of the ongoing projects from the 11th Malaysia Plan, capacity to implement projects during the year and implementation of catalytic, high impact, and people-centric projects,” he said.

The chief minister said the year 2021 will mark the first year of the 12th Malaysia Plan (2021- 2025) implementation period.

He said to achieve the state’s aspiration towards becoming a high-income economy by 2030, the state development strategic thrusts and directions are being formulated to take into account the Post-Covid-19 Exit Economic Strategy 2030 that will encompass the forthcoming 12th Malaysia Plan.

“The priority of my administration is to provide additional resources and assistance including for the vulnerable section of our society, speed up development in both urban and rural areas as well as enhance provision of infrastructure and utilities.

“Therefore, the State Budget 2021 is framed across eight strategic thrusts aimed at steering and reinvigorating the economy towards recovery and sustainable growth.

“This approach will enable us to build a resilient society, strengthen social inclusivity and enhance environmental sustainability,” he said.

He added the eight strategic thrusts anchoring the State Budget 2021 are steering economic recovery; securing the people’s wellbeing; ensuring food security and transformation of agriculture production; strengthening social security and advancing digital economy.

The others are human capital development; promoting environmental sustainability; and enhancing government service delivery.