Sabah announces record 2012 budget of RM4bil

The Sabah state government has allocated RM4.048 billion for its 2012 state budget, an increase by RM979.62 million compared with the estimated provision for 2011.

Chief Minister Musa Aman, who is also state Finance Minister, said the estimated expenses of 2012 will cover three main components, namely emolument(RM623.66 million), recurring expenses (RM1.120 bilion) and special expenditure (RM2.303 bilion).

“The 2012 budget is the largest in the history of Sabah state, a proof of the government’s commitment to continue to provide the best for the people and the state.

“We would also continue to spur the development of the state to a higher level taking into account the present challenges including the global economy,” he told reporters after tabling the state budget at the state assembly in Kota Kinabalu today.

Musa also said that the state’s revenue has been estimated to total to RM3.69 billion in 2012 with the major contribution to come from sales tax on crude palm oil, petroleum royalties, income and interest from investments, land and forestry.

Meanwhile, the revised estimated revenue for this year was expected to go up to RM3.82 billion, a rise by RM1.072 billion or 39 percent compared with the original estimate of RM2.747 billion.

“The state government is confident that revenue for the state in 2012 will see a similar performance.

“Nevertheless, the state government has to be prudent and take a conservative approach in the projection of the revenue estimate considering that many of the major revenue sources of the state are not within the control of the state government, especially the fixing of prices and production for crude palm oil and petroleum are not within the control of the state government,” he said.

Musa said under the state’s revenue, taxes are expected to contribute RM1.165 billion, non-tax revenue RM2.189 billion and non revenue income RM336.31 million.

On the allocation for state development, Musa said it was estimated to amount to RM881.87 million, a rise by RM54.47 million compared with the allocation given for this year.

From this expenditure, RM545.91 million or 64.08 per cent will be channelled to the economic sector, RM256.9 million or 30.16 per cent to the social sector.

- Bernama