With the 2021 Budget, from right, are CM Datuk Seri Panglima Hajiji Noor, DCM Datuk Seri Bung Moktar Radin, DCM Datuk Dr Joachim Gunsalam and DCM Datuk Seri Panglima Dr Jeffrey Kitingan.
KOTA KINABALU: Chief Minister Datuk Seri Panglima Hajiji Noor tabled a RM4.303 billion budget for Sabah for the year 2021, with a surplus of RM178.7 million.
Hajiji, who is also the State Finance Minister, said that the State Government is expected to collect RM4.481 billion in revenue for next year.
“The estimated revenue is projected to increase by 7 percent or RM289.54 million compared to the current year’s estimate of RM4.192 billion.
“The increase in revenue is due to the availability of new revenue sources from the State Sales Tax collection,” he said when tabling the 2021 Budget here at the State Legislative Assembly today.
The Sulaman assemblyman revealed that the estimated revenue composition for 2021 consists of Tax Revenue of RM2,220.85 million, equivalent to 50 percent; Non-Tax Revenue of RM1,805.22 million or 40 percent; and Non-Revenue Receipts of RM455.89 million or 10 percent.
Hajiji said that the theme of the 2021 Budget is “People’s Prosperity, Sustainable Economy”, which is based on the aspirations and commitment of the government with the slogan “Sabah Maju Jaya” – to instil noble values and responsibilities among the people to unite and work together to build a progressive and successful State.
“Sales Tax on Petroleum Products, is the largest contributor with an estimated revenue of RM1.25 billion or 27.9 percent of the total budget for year 2021.
“The State Government will ensure that revenue through this sales tax collection is utilized to the best of our ability for the purpose of development expenditure and the well-being of the people of Sabah,” he explained further.
He pointed out that the Covid-19 pandemic had made a significant impact on the State Government’s performance in terms of revenue collections.
According to Hajiji, almost all state revenue sources had been affected this year.
“The estimated revenue revised for 2020 is projected to decrease by 17 percent or RM721.42 million to RM3,471.00 million compared to the original estimate. This reduction is due to low production and average price of crude oil which has affected the collection from this source of revenue,” he said.
The State Sales Tax Collection is the main contributor in the Tax Revenue Category (which is projected to be 46.5 percent or RM2.08 billion from the total estimated revenue for year 2021) while the Petroleum Royalty is expected to continue to be one of the main contributors in the Non-Tax Collection Category (with an estimate of RM911 million or 20 percent from the year 2021 total estimates).
Meanwhile, the Federal Government’s Grants are the main contributor under the Non-Revenue Collections, with contributions of RM455.89 million equivalent to 10 percent from the total revenue estimates for year 2021.
“In line with the essence of the theme for the State Budget 2021, the distribution of development allocation next year is focused on the Economic Sector as the recipient of the largest amount of RM475.59 million or equivalent to 65 percent.
“This is followed by the Social Sector which is distributed by RM239.86 million or 33 percent and the General Administration Sector of RM17.65 million which is equivalent to 2 percent of the total development allocation for the year 2021,” Hajiji further disclosed.
He said that strategies and approaches in order to invigorate the development will be focused on the growth of several main productive sectors, namely agriculture, tourism and industries.
“In year 2021, the State Government will allocate RM931.21 million for the development of those three sectors. The amount is RM34.89 million or equivalent to 3.89 percent higher than the year 2020 allocation of RM896.32 million,” he said.
Hajiji disclosed that a total of RM560.39 million is allocated for the agriculture sector.
“The Ministry of Agriculture and Fisheries (MAF) will continue to focus on food crop production, farm certification, agricultural research and innovation, quarantine enforcement and empowerment of entrepreneurs,” he said.
Meanwhile, a total of RM142.85 million is allocated to the development of the industrial and trade sectors under the Ministry of Finance, Ministry of Industrial Development, Ministry of Rural Development (KPLB) and the Chief Minister’s Department in year 2021.
As for the tourism industry, a total of RM227.97 million will be allocated to fund the Ministry of Tourism, Culture and Environment Sabah (KePKAS) and also its departments and agencies to stimulate growth in the tourism sector.
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