THE upcoming 2027 Sabah Budget could reach RM8 billion for the first time in the State’s history, provided the Federal Government delivers an additional RM900 million special funding as promised, said State Finance Minister Datuk Seri Masidi Manjun.
He said the RM900 million is the remaining of Sabah’s RM1.5 billion interim special grant, which would be channelled towards development.
“We will receive this promised additional RM900 million from the Federal Government and will utilise the entire allocation for development purposes. This means that, we may have a State budget that comes close to our maximum revenue capacity that could reach almost RM8 billion,” he said.
It was reported recently that the Federal Government would gazette a new order under Article 112D of the Federal Constitution by end of this year to enable Sabah to receive the remaining RM900 million of its RM1.5 billion special grant.
Federal Finance Minister II Datuk Seri Amir Hamzah Azizan said RM600 million had already been paid, with the balance to be disbursed after the order is grantedMasidi said the State Government is still preparing the 2027 Budget through consultations and discussions with various parties, stressing that expenditure must remain aligned with the State’s revenue.
While there are numerous requests for allocations to fund various projects and needs, he said ultimately, the State Government has to remain practical and ensure spending do not exceed its financial capacity.
“There are certainly many requests for funding various needs and projects, but eventually, we have to be practical.
“We can only prepare a budget that is equivalent to or does not exceed the State’s income or revenue,” he said.
He also stressed the importance of maintaining sound financial management and good governance in preparing the budget.
On development priorities, Masidi said water supply, roads and electricity would continue to receive among the largest allocations, as these basic infrastructure sectors remained key priorities for the state.
However, he said infrastructure challenges could not be resolved overnight, with some projects taking up to three years to complete.
He acknowledged the difficulties faced by water consumers and urged the public to remain patient as the government continued allocating substantial funds to upgrade water supply infrastructure.
Asked whether the allocations would be significantly higher, Masidi said they would be “much bigger”, but stressed that effective implementation is crucial to ensuring maximum returns from public expenditure.
“What matters most, ultimately, is implementation. We hope those entrusted with carrying out these projects will do so effectively. We want to see maximum benefits from every Ringgit we spend,” he said.
