THE State Government has proposed a RM5.138 billion budget for 2023 with a surplus of RM130.47 million – the ninth consecutive surplus budget for Sabah since 2015. The preceding year’s budget was RM4.6 billion.
Chief Minister Datuk Seri Hajiji Noor, who is also the Finance Minister, said it is Sabah’s highest budget since independence with a focus on strengthening the economy and progress for the State and people.
Sabah, he said, is on the right track towards economic recovery with a recorded positive growth rate of 1.1 per cent in 2021 compared to a 9.2 per cent contraction in 2020.
“The Gross Domestic Product (GDP) of Sabah has increased to RM78.7 billion in 2021 from RM77.8 billion in 2020,” he said when tabling the 2023 State Budget at the State Legislative Assembly in Kota Kinabalu on Nov 25.
The Chief Minister said Sabah’s GDP per capita has also increased to RM29,960 in 2021 compared to RM24,652 in the previous year.”
Sabah’s economy, Hajiji said, is expected to continue its positive recovery and economic growth momentum.
“In the period of January to August 2022, Sabah has recorded a positive trade balance of RM23.5 billion compared to RM13.3 billion in the same period last year, an increase of 77.0 per cent.
“This achievement is mainly supported by the increase of the State’s total exports in January to August 2022 by 54 per cent and reached RM50.4 billion compared to RM32.8 billion in the same period in 2021, which is contributed by the State’s main commodities export, particularly petroleum and crude palm oil.
“Meanwhile, the total imports have recorded an increase of 35 per cent amounting to RM26.5 billion from RM19.5 billion in 2021,” he said.
He said the Government’s economic recovery strategy implementation by increasing development expenditure through the 2022 National Budget of RM5.2 billion and 2022 State Budget of RM879.28 million has enabled the State to implement more development initiatives and programmes, especially on high-impact projects.
“The State’s domestic and private consumption is projected to grow continuously, which will be supported by the rising household disposable income and recovery of the labour market.
“The State’s economic momentum next year is expected to continue to be driven by the recovery and acceleration of economic sectors, especially the tourism industry; export stability; increased domestic consumption; public and private sector capital expenditure; and the implementation of numerous high-impact investment projects.
“Therefore, in line with the current global and national economic development, Sabah is predicted to maintain a positive economic growth in 2022 and 2023 respectively at a rate of 4 to 5 per cent.”
Themed “Strengthening the Economy for People’s Prosperity”, Hajiji said it is in line with the State’s economic growth based on Sabah Maju Jaya Development Plan.
“The primary focus of the 2023 Budget is to drive and strengthen the State’s economy to ensure continuous and inclusive progress and prosperity of the State and its people,” he said.
For the first time, he said, the State Government in 2021 had successfully generated more than RM5 billion in revenue and at the same time created a new record with the highest revenue in the history of Sabah amounting to RM5.449 billion.
As a crude oil and crude palm oil (CPO) producing state, the exceptional increase in commodity prices has brought about a positive impact on the State’s revenue this year.
“Therefore, the Revised Revenue Estimates for 2022 is projected at a higher level which is RM5.988 billion compared to the original estimates of RM4.707 billion. God willing, if commodity prices continue to be high, we can reach a new revenue level of RM6 billion.” Hajiji said the estimated revenue for 2023 is projected at RM5.268 billion through three sources.
“Firstly, tax revenue amounting to RM2.405 billion which includes state sales tax of RM2.270 billion, land rent of RM90 million and ports and harbour dues of RM44.5 million.
“Secondly, non-tax revenue amounting to RM2.311 billion which includes petroleum royalties of RM1.35 billion; sales of water at RM300 million; land premium of RM144 million; dividends of RM137 million; forest produce royalty and export on timber products of RM133.5 million; and interest on cash balance and short term deposits of RM115 million.
“The third source is non-revenue receipts amounting to RM553.17 million, of which one of the main contributors is Federal Government grants with an estimate of RM528.87 million which comprise five receipts namely special grants; capitation grants; grants in aid of operating expenses for the departments under the concurrent list; grants to replace import/excise duties on petroleum; and contribution towards implementation cost of federal development projects,” he said.
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