KOTA KINABALU: Chief Minister Datuk Seri Musa Aman yesterday unveiled the largest ever State Budget, which proposes to spend RM4.05 billion against a projected revenue of RM3.69 billion next year.
The people and investors friendly 2012 Budget represented an increase by RM979.62 million or 31.92% compared RM3.07 billion approved for 2011 Budget.
Musa, who is also State Finance Minister, said the estimated expenditure in 2012 will cover three main components, namely emolument (RM623.66 million), recurring expenses (RM1.120 billion) and special expenditure (RM2.303 billion).
In tabling the “historic” budget at the State Assembly sitting, he said it was made possible by the State’s strong economy and financial position, as well as consistent actual surpluses.
Next year, the State’s economy is projected to grow between 4.5% to 5% from this year’s forecast of 3% to 4%, he said.
Pointing out that Sabah recorded a surplus of RM730 million in 2010, he said the State expects to collect revenue amounting to RM3.69 billion next year, which is the highest ever in the history of the State Budget.
The revised revenue for this year was expected to be around RM3.82 billion, an increase of RM1.07 billion or 39% compared to the original estimate of RM2.75 billion, he said.
According to him, despite uncertainties in the global economy, the State’s external trade sector registered export growth of 4.0% in the first half of this year, although imports registered higher growth of 13.2% in the same period mainly due to higher import cost of food and fuel.
“Lower trade balance of RM8.31 billion was recorded in the first half of the year as compared to RM9.18 billion in the same period last year.
“Although the exports volume was lower for most of the State’s export commodities, the exports value continued to register positive growths due to higher prices of export commodity except for timber-based products.
“Despite the less encouraging performance from the external sector, I am pleased to note that private investment has picked up this year. For the first seven months of this year, approved investment in the manufacturing sector is RM955 million as compared to RM270.15 million for the same period last year,” he said.
Musa said the 2010 Auditor General Report showed several actual figures that reflected the highest achievements in the State financial history, such as State Reserves exceeding RM3 billion; State Revenue exceeding RM4 billion; Actual surplus amounting to RM730 million; Development expenditures at RM1.17 billion; and no arrears on federal loans, we paid all dues.
He told the House that Sabah will also get federal assistance amounting to RM1,520.76 million for development for next year.
He said the money will be channeled to the State in the form of Federal Reimbursable Grants amounting RM40.46 million, Federal Loans RM36.18 million, and federal direct grants amounting RM1.44 billion.
The Federal direct grants were for various programmes and projects including Rural Water Supply (RM572.77 mil), Rural Electricity (382.50 mil), Roads and Bridges (RM444.35 mil), Railway (RM33.50 mil) Rubber Fund Board (RM5 mil), Forestry (RM4.8) and Fishery (RM1.2 mil).
According to Musa, the bulk of the RM4.05 billion budget will to the Finance Ministry totalling RM1.94 billion followed by the Ministry of Infrastructure Of Infrastructure Development (RM989.2 mil), the Chief Minister’s Department (RM622.97 mil), Ministry Of Agriculture and Food Industry (RM414.93 mil), Ministry Of Community Development and Consumer Affairs (RM140.17 mil), Ministry Of Tourism, Culture and Environment (RM130.04 mil).
The Ministry Of Local Government and Housing will get RM122.98 mil, Ministry Of Resource and Information Technology Development (RM92.37 mil), Ministry Of Rural Development (RM166.72 mil), Ministry Of Youth and Sport (RM80.32), Ministry Of Industrial Development (RM29.83 mil), Expenditure Not Included in Ministerial Portfolios (RM23.97 mil), Charge Expenditure (RM163.9 mil) and Contingency Fund (RM15 mil).
Musa said the proposed estimates for emolument in 2012 was RM623.66 million, an increase of RM26.10 million or 4.37% as compared to RM597.56 million in 2011.
The increase among others, was due to the government’s effort in meeting the needs of establishing and filling new posts that were critical for the State’s administrative machineries and as catalyst for development.
An estimate of RM1.12 billion was proposed for recurrent expenditures for 2012, which was an increase of RM63.14 million or 5.97% as compared to RM1.06 billion for this year.
A sum of RM2.30 billion was proposed for special expenditures, an increase of RM890.38 million or 63% as compared to the allocated sum of RM1.41 billion for this year.
Themed “Accelerating the State’s Well-Being and Prosperity”, Musa said the 2012 Budget was aimed at stimulating economic growth by emphasizing improvement on basic infrastructures and public utilities for the benefit of the people and investors.
Apart from efficient banking system and adequate basic infrastructure such as roads, bridges, water supply, electricity and other infrastructure facilities, the State Government were committed to put in place quality financial infrastructure through financial discipline and good governance, including effective reporting and financial control system.
The 2012 allocations, added the Chief Minister, will be spent in accordance with the various objectives and strategies which were the same as last year; namely to strengthen State financial position, to maintain economic momentum, to improve basic infrastructure and public facilities, to accelerate the achievement of Halatuju, to develop high quality youth and human capital, to eradicate poverty, and to achieve balanced regional development.
“In line with the State strategic development thrust and direction, the State Development Budget for 2012 will continue to focus on programmes and activities that will speed up economic growth, create a vibrant, peaceful and comfortable environment that can improve the quality of life in the State.
“As such, a bulk of the development budget for 2012 totaling RM545.91 million or 64.08% is channeled to the economic sector. Social sector is allocated a sum of RM256.9 million or 30.16%. The state strategic development plan or commonly known as “Halatuju Pembangunan Negeri Sabah” will be allocated a sum of RM617.43 million or 72.5% of the overall total of the State Development Budget for 2012,” he said.
The implementation of infrastructure and public utilities programmes will involve an allocation of RM1,284.78 million. Out of this amount, RM458.8 million is for water supply, RM270.63 million for road and RM63.58 for sewerage.
For the agriculture, the government allocates RM335.95 million, out of which RM173.62 million and RM162.33 million will be spent on operation and development respectively, with RM39.20 million to be channeled to agencies such as Korperasi Pembanguna Desa, Rubber Industry Board Sabah (LIGS) and Ko-Nelayan.
To further strengthen the tourism sector, cultural heritage and environmental conservation, the government allocates RM158.84 million to the Ministry of Tourism, Culture and Environment and its six agencies as well as the Forestry Department and Sabah Biodiversity Centre.
The allocation provided includes RM139.70 million for operation and RM19.14 million for implementing various development programmes. A grant of RM59.50 million will also be allocated to Sabah Tourism Board, Sabah Cultural Board and Sabah Parks to ensure the continuous development of the Sabah tourism industry in the short and long term.
An allocation amounting to RM98.15 million was also provided to support the development of the manufacturing sector, aimed at intensifying efforts to propel the industry in order to increase its contribution to the State’s exports value.
Special attention will be to further develop the Kota Kinabalu Industrial Park (KKIP), POIC Lahad Datu and POIC Sandakan, with RM35.05 million will be provided for the purpose.
A sum of RM71.91 million will also be allocated for setting up more e-Desa centers to empower the people in line with the Government’s effort to develop a knowledge-based economy.
“The quality and moral values of human capital will continue to be inculcated among Government’s employees and the society particularly the youths. In realizing this, the Government will allocate a total of RM204 million for human capital development programmes.
“The State Government will also allocate RM58.27 million in 2012 to implement various Youth Development Programmes such as Scholarship Awards, Skills Programmes, Grassroots Youth Association programmes, Registration Campaign of Grassroots Youth Association, Patriotism and Nationalism Programmes, Social and Volunteerism Programmes, Love The Nature Programmes, Extreme and Recreational Programmes, Healthy Lifestyle Programmes, Programmes with Uniformed Association and Programmes with Public and Private Higher Learning Institutions and Schools,” said Musa.
To focus on development of excellence performance in sports, the Government will allocate RM35.45 million for the year 2012.
Social and Welfare Development will also continue to be given attention, with RM89.34 million to finance various pogrammes in 2012, while RM10.73 million for development of women and family institution.
A sum of RM122.97 million will go to local authorities (PBTs) to complement development agenda of Sabah and Federal Government in providing high quality public services and facilities in the housing sector, tourism, business, health, safety, environment and others.
Of the total allocation, RM88.48 million is set aside for expenses under supply budget while RM34.49 million is provided for development programmes such as provision of infrastructure, basic facilities and development of new townships and housing in several districts of Sabah.