A Whopping RM8B Budget ’17 for Sarawak As Adenan Goes For Dev’t

In timber-rich Sarawak, these are the living conditions of the poor Penan tribe. On Monday Adenan Satem announced an RM8 billion budget for next year.
In timber-rich Sarawak, these are the living conditions of the poor Penan tribe. On Monday Adenan Satem announced an RM8 billion budget for next year.

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

Chief Minister Tan Sri Adenan Satem said of the amount RM5.928 billion or 73 per cent had been proposed for development, while the balance of RM2.206 billion or 27 per cent for operating expenditures.

Adenan Satem
Adenan Satem

“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 Monday.

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 per cent allocation to rural areas next year amounting to RM2.982 billion.

Adenan, who is also state Finance Minister, said this provision was higher compared to the RM2.354 billion in 2015 and RM2.65 billion 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 2017 Budget proposal also took into special consideration of the “Sarawak Transformation: The Way Forward”, with three Cabinet committees formed having identified three key areas for implementation.

“For these initiatives, the state has proposed a total allocation of RM817 million, of which RM797 million, is for development expenditure and RM20 million for operating expenditure,” he said.

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

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

“Of this amount, among others, RM539 million is from forest royalty and premium and RM440 million from sale tax, which includes RM320 million expected from crude palm oil and palm kernel oil and RM120 million from lottery,” he said.

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

He said non-revenue receipt was expected at RM21 million, mainly from forest liquidated damages and disposal of assets.

“Federal grants and reimbursements are expected to be at RM150 million,” he added.