Sarawak proposes RM8.134b for its Budget 2017

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KUCHING: Sarawak has proposed a sum of RM8.134 billion for its Budget 2017.

Chief Minister Adenan Satem said of the amount RM5.928b or 73% had been proposed for development while the balance of RM2.206b or 27% for operating expenditures.

“Being a developing state, it is essential that we continue to have a budget that is biased towards development and rural focused,” he said when presenting the Supply (2017) Bill, 2016 at the state legislative assembly sitting here today.

In pursuing the objective of continuing to narrow the development gap between urban and rural areas statewide, he said the budget would provide more than 50% allocation to rural areas next year amounting to RM2.982b.

Adenan, who is also state finance minister, said this provision was higher compared to the RM2.354b in 2015 and RM2.65b in 2016.

“This is also in line with our commitment to give greater focus on the implementation of programmes and projects in the rural areas to accelerate rural development transformation.

“Such efforts will also open up greater opportunities for development to benefit our rural communities,” he said.

Adenan said the state’s Budget 2017 proposal also took into special consideration the “Sarawak Transformation: The Way Forward”, with three state Cabinet committees formed having identified three key areas for implementation.

“For these initiatives, the state has proposed a total allocation of RM817m, of which RM797m, is for development expenditure and RM20m for operating expenditure,” he said.

Meanwhile, he said, for 2017 the state revenue was projected at RM5.321b.

“Tax revenue is expected to be at RM1.25b.

“Of this amount, among others, RM539m is from forest royalty and premium and RM440m from sales tax, which includes RM320m expected from crude palm oil and palm kernel oil and RM120m from lottery,” he said.

On non-tax revenue, Adenan said, this was projected at RM3.9b of which the bulk, at RM1.577b, would be from cash compensation in lieu of oil and gas rights.

He said non-revenue receipts was expected at RM21m, mainly from forest liquidated damages and disposal of assets.

“Federal grants and reimbursements are expected to be at RM150m,” he added.