Sabah Budget 2013: RM4,088 billion

A RM40 million increase

The Sabah State government has proposed an annual budget of RM4,088.48 billion for 2013. With an increase from this year's provision by about RM40mil, next year's allocation will be the biggest yet in Sabah's history. The provisional sum covers three main areas, namely:

i)    Emoluments                 - RM663.17 mil
ii)   Recurrent expenditure    - RM1,087.93 mil
iii)  Special expenditure       - RM2,337.38 mil

     TOTAL                          : RM4,088.48 bil

From the pie chart, the allocations for Finance Ministry, CM Department and Infrastructure development alone represent more than 75% of the 2013 budget.

Table 1: Sabah state budget for the past five years.

Budget objectives & Expenditure breakdown

Key objectives:

 (i) To strengthen the State financial position;
(ii) To improve basic infrastructure and public amenities;
(iii) To accelerate the achievement of Halatuju;
(iv) To develop valuable and high quality youth and human capital;
(v) To eradicate poverty and improve the quality of life of the people; and
(vi) To achieve balanced regional development

Expenditure breakdown:

Revenue projection: RM3.828bil, Expenditure: RM4.088 bil
1)  Ministry of Finance                                                - RM1,873.57 mil
2)  Infrastructure development                                      - RM716.50 mil
3)  Chief Minister Department                                      - RM443.97 mil
4)  Agriculture and food industry                                   - RM306.88 mil
5)  Social development and consumer affair                  - RM138.49 mil
6)  Tourism, culture and environment                            - RM108.35 mil
7)  Local government and housing                                - RM87.92 mil
8)  Resource development and Information Technology  - RM87.89 mil
9)  Rural development                                                  - RM68.00 mil
10)Youth & Sports                                                      - RM58.34 mil
11)Expenditure not included in Ministry portfolio            - RM23.63 mil
12)Charge expenditure                                                - RM143.66 mil


Chief Minister, Datuk Musa Aman (during the 2013 Budget tabling on Oct 19,2012):
"This budget has been set for the entire spectrum of the society, taking into consideration the needs and well being of all people in the state and bringing the development of the state to a higher level"

Sabah Budget 2013

The 2013 Budget for Sabah will be tabled today by Chief Minister, Datuk Musa Aman.

UPDATED: CHIEF MINISTER TABLED RM4,088.48 BIL 2013 BUDGET

Last year the CM who is also the Finance Minister announced the biggest ever budget for Sabah of RM4.048 billion in a lengthy afternoon cabinet sitting.

Sabah's last 5 years budget seen on the increasing trend.

2013 Budget Outlook

Yesterday, Institute for Development Studies (IDS) Sabah chairman Datuk Clarence B. Malakun said he expected the State to table the best ever Barisan National State Government budget. He is confident that it would be even better than this year's, which at RM4.048 billion was the biggest in Sabah's history.

Meanwhile, Pakatan Rakyat (PR) Sabah unveiled their version of an ambitious State Budget 2013 of RM7.284 billion in expenditure for development covering social, economy and welfare aspects in Sabah if it take over the government. The opposition took into account the promised 20% increase in oil royalty once it comes into power.

Some of the highlights of the opposition's alternative state budget are:
Thrust 1: Making our Land Work
Thrust 2: Raising Disposable Income Sustainably
Thrust 3: Social Outreach for All
Thrust 4: Enabling and Empowering Women and Local Communities
Thrust 5: Improving our Connectivity

This, for now, is just for reading pleasure as the real deal will be coming out this afternoon.

Let's hope for the best for the Rakyat.

No tax for Individuals earning less than RM5,000

As long as you draw a monthly salary of RM5,000 or below, you do not have to pay a single cent in tax. I think it's that simple, but tell me if you understand it otherwise.

Truth is, it's not so. Those RM4,999 earners please don't celebrate just yet.

It seem that even mainstream media can be sweet-talking to keep you reading. Somehow I felt cheated after reading the whole article. A monthly income of RM5,000 would give you annual salary of RM60,000. In this year's budget (2012), if you earn less than RM30,000 annually, you do not have to pay tax. That works out to be about RM2,480 per month. Next year (budget 2013), that'd be RM5,000, or so it seem..

No tax for individuals earning less than RM5,000?

This could only mean one thing: You'd have to be earning double that threshold of this year's figure to qualify yourself to start paying tax. And that's a massive jump. But like I mentioned, it is not the case and you have to keep reading to find out.

I have appended herewith the article for your reading pleasure and clarification of what IRB meant to say.


No Tax For Individuals Earning Less RM5,000

Bernama via The New Straits Times. September 29, 2012

CYBERJAYA, Sept 29 (Bernama) - The one percent tax cut in the budget means that individuals with chargeable income under RM5,000 do not have to pay tax starting 2013 assessment year.

Inland Revenue Board (IRB) chief executive officer Tan Sri Dr Mohd Shukor Mahfar said those with taxable income of RM5,000-RM20,000 will enjoy two percent tax compared to three percent.

"Individuals with taxable income of RM20,001 to RM35,000 will be taxed six percent compared to seven percent previously," he told reporters Friday night.

Mohd Shukor said the tax reduction takes into account all exemptions and not according to gross income. Those with queries about Budget 2013 and tax reduction can call the Customer Service Centre line 1-300-88-3010 or email at callcentre@hasil.gov.my.

The tax cut annouced by Prime Minister Datuk Seri Najib Tun Razak in Budget 2013 means that about 170,000 individuals no longer need to pay income tax.


Source                     : Bernama, The Borneo Post, New Straits Times
Date of Publication  : Saturday, 29 September 2012
Related story           : No Tax For Individuals Earning Less Than RM5,000