THE State Government’s request to establish a special trust fund to keep and manage Federal allocations is being considered following recent engagements with the Federal Government, said State Finance Minister Datuk Seri Masidi Manjun.
“We have done engagements. The Development Action Council’s response is, firstly, they are considering our request.
“But secondly, there are allocations that cannot be put into the trust fund, as certain allocations are a loan which the Federal Government borrowed from certain institutions, so they have to take back (the unused allocation). It is not a revenue that they can collect,” he said during question time at the State Assembly.
Masidi was responding to a supplementary question by Sebatik Assemblyman Datuk Hassan A Gani Pg Amir who asked how the State Government would manage unused Federal allocations.
Earlier this year, Masidi said there was a need to establish a special trust fund to ensure that unused Federal allocations can continue to be used and ensure Sabah’s continuous development.
He had highlighted that although the State is given billions of ringgit for development, the allocation cannot be fully used due to bureaucracy which causes reimbursements and project implementations to be delayed.
Meanwhile, Sabah’s increase in revenue collection in recent years has enabled the State Government to step up its efforts to improve basic facilities and infrastructure as well as increase allocations for development.
Assistant Finance Minister Tan Lee Fatt said the State Government’s revenue increased by 51.74 per cent from RM3.591 billion to RM5.449 billion in 2021.
“The increase in revenue in 2022 is the highest ever recorded, amounting to RM6.960 billion.
“In line with the increase in state revenue collection, the State Government is able to increase the total distribution of allocations to ministries and departments in 2022 which is 6.37 per cent compared to the previous year or the equivalent of RM4.596 billion.
“In 2023, the allocation has been further increased to RM5.138 billion, equivalent to 10.55 per cent, compared to the previous year,” he said.
As such, he said the State Government was also able to increase allocations under the infrastructure, agriculture, social, human capital development, tourism, industrial, women and youth development and ICT sectors.
“In addition, road infrastructure in rural areas has also been improved. The allocation for this purpose has been increased from RM295.75 million in 2021 to RM305.05 million in 2022 and RM360.19 million in 2023.
“The total increased allocation distributed in 2023 compared to the previous year is RM542 million. This shows the State Government prepares an inclusive budget regardless of urban or rural areas,” he said.
Tan was responding to Hassan who asked how the State’s revenue collection have benefited the wellbeing of Sabahans, especially those in rural areas.
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