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.

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!