Sabah Budget 2012 - Updated

This is an update to the earlier entry posted on 17th November 2012, prior to the tabling of the state budget, titled Sabah Budget 2012. I mentioned that the state government would table a RM3.4 bil budget, an increase of 11% compared to the previous figure. It appeared to be an underestimation as the CM announced the biggest ever budget of RM4.048 billion later that afternoon.

The following Table shows Sabah's historical budget figures tabled by Chief Minister Datuk Musa Aman who is also the State Finance Minister:

Budget 2012 was tabled by CM on 18th November 2011

Sources:
1) The 2009 Budget Speech
2) The 2011 Budget Speech
3) Daily Express
4) The Star Online - for 2010 data.

Where will this RM4.048 bil expenses go to? view source

1) Salaries + administrative expenses
2) Infrastructure - RM1.3 bil
3) Supply of clean water - RM459 mil
4) Roads - RM271 mil
4) Sewage treatment - RM64 mil
5) Agriculture - RM336 mil
6) Tourism - RM159 mil
7) Bringing riches to the village poor - RM169 mil (whatever that means)
8) Training (jobs, scholarships, professional/vocational) - RM204 mil
9) New township and housing - RM123 mil
10) ICT (e-constituency portal, e-community, e-Desa) - RM72 mil

If the figures don't add up, don't blame your mathematics teacher, blame the rain instead.

Biggest ever spending there but it is necessary for continual development of Sabah.

Sabah Budget 2012

Today, in less than a couple of hours time, Chief Minister Datuk Seri Musa Aman will table the State Budget for 2012, during the state assembly sitting.

Chief Minister, Datuk Musa Aman, last year during the 2011 Budget tabling.

Among the highlights in putting the people's well-being first (as mentioned in the budget pre-tabling press statement) , are:

a) emphasizing on agriculture, tourism and manufacturing,
b) poverty eradication,
c) youth and human capital development,
d) balanced development statewide,
e) development of basic infrastructure and facilities

This is the general idea of what we will be hearing this afternoon, a full detailed report to be expected in the local dailies tomorrow.

Note that the government has been telling us all along that we have strong economic foundation and that we have a strong state reserve. While strong economic foundation is quite straight forward factual, "strong reserve" statement is debatable and requires elaboration on the part of the government.

Last year the Chief Minister tabled a RM3.07 billion budget and if the revenue rose as claimed then we can look at probably RM3.4 billion budget this year.

Coming back to strong reserve as reported by Bernama yesterday, that would imply that the state have a lot of money. I do not have access to the state government's account but there was a mentioned in Daily Express not too long ago that it is still using Cash Accounting in its financial reporting. Read about the difference of Cash Accounting and Accrual Accounting here.

Such accounting method does not give a true reflection of the financial position of the government of Sabah. The government would just need to defer payments of its long term liabilities for few years and you will immediately see 'surplus' in its annual report. Does 'few years' of withheld payment sound familiar to you - especially those in long term government contracts or concessions?

I bet it does. In fact, too familiar that some are getting fed-up with the waiting game.

It is no surprise that some opposition leaders are claiming that the state government does not have money and we are spending money that we borrowed. Now look at this objectively and for once don't look at it as political.

Check that your house is in order financially, see if you Buku 555 is not too stuffed and come up with that budget appropriately. Don't withhold payment unreasonably!

Kurangkan tambahlah hutang tu!