Lower spending of RM3.49bil
Published on: Saturday, November 21, 2015
Kota Kinabalu: Chief Minister Datuk Seri Musa Aman on Friday proposed to spend RM3.49 billion next year, slightly lower than last year's allocation.In his State Budget 2016 proposals which he took 90 minutes to table at the State Legislative Assembly, Musa projected another surplus of some RM29.9 million with a revenue estimate of RM3.52 billion for next year.Musa, who is also State Finance Minister, said he is counting on the support and cooperation of all parties involved to reach the budget target in the face of various challenges, especially the impact of weak commodity prices such as crude oil and Crude Palm Oil (CPO) to the State's economy.
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The budget is lower than the previous by about RM322 million or eight per cent of this year's RM3.813 billion.The Government's estimated revenue collection for 2016 also shrank by RM342 million or 8.9 per cent compared to the estimated revenue in 2015 mainly due to a sharp fall in commodity prices.Despite the lower numbers across the board, Musa assured that the economic fundamentals of the State are still strong and remain on the right track."Undeniably, there are still many development efforts that need to be improved for the benefit of the people in this State, particularly in the context of socio-economic and infrastructure development as well as basic amenities.
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"The Barisan Nasional, which currently administers the State, has always endeavoured to the best of its ability to harness all efforts and ideas in implementing what we feel are beneficial for the wellbeing of the community in particular and the State in general," he said.Musa is confident that as a State with financial capability accredited with AAA rating for seven years in a row, the Government is competent to perform the entrusted responsibility because it has an efficient administrative machinery in financial management, having been awarded with "Unqualified Certificate" or "Clean Bill" for 15 years.
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A more positive number appeared in the State's trade surplus which registered RM6.8billion, although the value declined by 5.7 per cent in the first eight months of this year compared to the same period last year. The State's export volume of crude petroleum also increased by 45.3 per cent to reach RM10.4billion during the same period.Explaining the decrease in revenue collection, Musa said the numbers have been adjusted to take into account the projected petroleum royalty to be received by the State and also the dropping price of CPO in the world market.Due to these factors, the Government is projecting to receive only RM900million in petroleum royalty and another RM900million in revenue collection of State Sales Tax on CPO for the year 2016.Musa also proposed RM714.29million for emolument, and RM1,179.55million for recurrent expenditures, whereas RM1,596.54million will be allocated for special expenditures.A sum of RM1,148.89million was proposed to be allocated for development expenditures, consisting of RM698.99million of State fund, a reduction of 6.41 per cent compared to estimates in 2015, and RM449.89million Federal sources which is Federal reimbursable grant amounting to RM35.8million and Federal loans totalling RM414.09million.Of these, RM441.67million or 63.19 per cent will be allocated for economic development, RM212.76million or 30.44 per cent for social development and RM44.56million or 6.37 per cent for administration."The State Government remains committed to strengthen the State development agenda in developing rural areas, agriculture, industrial and tourism sectors, human resource development and the people's wellbeing," he said.In terms of infrastructure development, the government will continue to focus on implementation of high impact projects which will benefit all levels of society and to reduce the development gap between urban and rural areas."The government also hopes that through such programmes, we will be able to further assist in uplifting the quality of life of the people especially our brethren who are staying far and away in remote places."For this, a total allocation of RM1,373.59million will be set aside in the year 2016 for the provision of infrastructure amenities and public utilities," he said.In a show of appreciation to one of the sectors that have been the State's main economic strength, Musa said the Government will continue to give top priority to agriculture sector under 2016 Budget, with an allocation of RM469.50million.The Government is also committed to providing infrastructure amenities and creating a conducive environment to all investors in the existing industrial parks such as Kota Kinabalu Industrial Park (KKIP), Palm Oil Industrial Cluster (POIC) in Lahad Datu and Sandakan as well as Sipitang Oil and Gas Industrial Park (Sogip)."As such, to spur the development of the State manufacturing sector, RM76.46million will be allocated in 2016," he said.Tourism remains one of the State's most important sectors, consistently bringing in billions of ringgit in tourism receipts and to support the tourism sector development, RM218.37million will be allocated.Poverty eradication programmes and improving the people's wellbeing also remain high on the Government's agenda with RM290.08million allocated for the programmes next year, which include Mesej programme, Program Kampung Sejahtera (PKS), finance welfare assistance and various outreach programmes.The Government will pay attention to the development of human resource and youth empowerment, allocating RM234.96million to realise this development agenda while RM65.75million will go towards the development of sports in the State.For their role as catalyst for unity and as smart partners of the government in achieving the State's development direction, the government aspires to produce more women who are knowledgeable and highly educated as well as creative and innovative and for this purpose, the government will be providing a total of RM218.31million.Some RM80.22million will be allocated to local authorities which would include RM12.5million in the form of subsidised low-cost housing in the interior of Sabah and in Tawau."The State Government will establish a special fund for bumiputera entrepreneurs to upgrade skills and for business achievements. The fund will be contributed by government-linked companies (GLCs) with profitable and excellent performance," he said.Musa also told the House that the government will intensify its effort to implement and complete all government approved development projects under the 10th Malaysia Plan (10MP) by the end of this year.Currently, about 80 per cent of the total allocation of RM4.7 billion under the 10MP had been spent."The State government is grateful to the Federal government for implementing various development projects in the State during the same period. Up to September this year, the Federal government has spent a total of RM14.7billion on development projects in the State under the 10MP," he said.Musa added that the Government aspires to continue further in developing the State under the 11th Malaysia Plan (11MP) with its focus on the State Strategic Development Direction which emphasises on improving the wellbeing, the quality of life of the people and creating a vibrant and sustainable economy."We hope that the excellent performance we achieved in the 10MP will be continued in the 11MP. For your information, an allocation ceiling totalling RM3.51 billion has been planned to continue with the State development agenda for the next five years," he said.Stay up-to-date by following Daily Express’s Telegram channel.
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