KUCHING: Chief Minister Datuk Patinggi Abang Johari Tun Openg announced a rural-centric and development-biased budget to further stimulate economic progress with a proposed Budget of RM11.914 billion for 2019, the state’s biggest ever.
Out of the total budget, an allocation of RM9.073 billion, including a federal fund of RM0.260 billion, was proposed for development expenditure and RM2.841 million was for operating expenditure.
For 2018, the state budget was RM8.2 billion, comprising RM5.745 billion for development expenditure and RM2.4816 for operating expenditure.
Abang Johari, who is also Minister of Finance and Economic Planning, said taking into account of an estimated total revenue of RM10,513 billion and a total proposed ordinary expenditure of RM10.391 billion, the proposed 2019 Budget was expected to generate a surplus of RM122 million.
“The state will continue with its expansionary fiscal policy with six key strategies and tapping into a new major revenue stream, including a five per cent sales tax on petroleum products effective January 1,” he said when tabling the Supply (2019) Bill at the Sarawak Legislative Assembly sitting here yesterday.
He said next year’s development expenditure estimates took into account high impact and people-centric projects, particularly in the rural areas, and commitment to complete the implementation of ongoing projects.
“For 2019, a sum of RM9.073 billion is proposed to finance various programmes and projects under the Eleventh Malaysia Plan, including socio-economic and rural transformation initiatives, walkabout projects and initiatives under the Digital Economy,” Abang Johari said.
Of the total provision for development expenditure, RM8.813 billion will be funded by the state while RM260 million is to be financed by the Federal Government.
The sales tax levied on petroleum products ‑ crude oil, natural gas, liquefied natural gas, chemical based fertilisers and gas to liquid products – was the state’s rights as enshrined in the Federal Constitution.
