Kota Kinabalu: Parti Solidariti Tanah Airku (Star) Sabah criticised the Federal Government for allegedly misleading the public over federal allocations to Sabah, saying the funds cited by the Treasury Secretary-General are obligations under the Federal Constitution and not part of the State’s 40 per cent entitlement.
Star Information Chief Anuar Ghani said while Treasury Sec-Gen Datuk Johan Mahmood Merican claimed that federal allocations for Sabah had increased from RM13 billion in 2022 to RM17 billion for 2025 and 2026, these figures include spending that the Federal Government is constitutionally required to bear, not discretionary grants.
He said the allocations, which cover federal ministries and agencies, the Pan Borneo Highway, the Southern Link Transmission Line, education and health facilities like the Sabah Heart Centre, fall under the Federal List in the Ninth Schedule of the Constitution, which outlines the Federal Government’s spending responsibilities.

“These are not ‘gifts’ or special favours. The Federal Government is duty-bound to pay for these items under the law,” he said in a statement, Tuesday.
He noted that the RM1.3 billion in direct cash aid under Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) schemes is also part of the capitation grant assigned to Sabah under the Tenth Schedule, not an additional benefit.
Anuar emphasised that the State’s RM2 billion annual revenue from the State Sales Tax (SST) on petroleum products is a constitutional right, as provided under Items (1) and (7) of Part V, Tenth Schedule, which assigns certain import and excise duties to Sabah and Sarawak.
He questioned the Treasury Sec-Gen’s remarks about a “new formula” for the special grant negotiations, pointing out that the High Court had already adopted in full the formula proposed by the Sabah Law Society (SLS).
“What new formula is he talking about? Just apply the existing one. It’s very simple,” Anuar said.
He accused the Federal Government of being “intransigent” and of repeatedly ignoring Sabah’s constitutional rights by refusing to disclose the actual revenue collected from the State — despite 13 formal requests by the State Government.
“The RM600 million special grant recently announced by the Prime Minister is nothing more than a token gesture, less than five per cent of what Sabah rightfully deserves,” he said.
He said the Federal Government’s failure to respect the High Court ruling and its continued denial of Sabah’s constitutional rights reflect an ongoing injustice.
“Again, they deny justice for Sabah. The people are fed up, and their frustration will be shown through the ballot box,” he said.