CM says 70 pct of state Budget 2018 to be used to hasten economic activities, sustain growth during the year

The State Budget 2018 will continue to be development-biased with 70 per cent of the budget of RM8.226 billion proposed for development.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said Sarawak, being a developing state, has to continue with a development-biased budget to stimulate a desirable level of economic activities and sustain economic growth during the year.

“In this regard, under the 2018 Budget proposal, a sum of RM5.745 billion or about 70 per cent of the total budget is proposed for development while an amount of RM2.481 billion or 30 per cent is proposed for operating expenditure,” he said when tabling the Supply (2018) Bill, 2017 at the State Legislative Assembly (DUN) yesterday.

Abang Johari stressed that the state government was committed to intensify the implementation of programmes and projects to further accelerate state development.

“Of the total development budget, 53 per cent allocation will be provided for rural areas in 2018 amounting to RM3.062 billion,” he said, noting that this provision was higher than the RM2.65 billion in 2016 and RM2.982 billion in 2017.

“Our continual effort in rural development is vital towards achieving our development objective in opening up greater opportunities in the rural and remote areas for the economic prosperity of our rural community.”

He also pointed out that the proposed State Budget 2018 is estimated to register a budget deficit of RM256 million.

He said this budget deficit for the year is on the basis of expected total revenue of RM5.525 billion against a total Ordinary Expenditure Estimates for 2018 of RM5.781 billion, of which RM2.481 billion is for operating expenditure and a sum of RM3.3 billion is proposed to be appropriated to the Statutory Funds to finance development programmes and projects.

“State revenue has been on a declining trend since 2015, significantly impacted by the falling of oil and gas prices; and reducing receipts from forestry and dividend income while expenditure is on a rising trend.

“Against this background, the government will intensify research and development activities with a view of sourcing new revenue stream to the state such as cess and levy on valuable commodities as well as royalties from patents,” he remarked.

Meanwhile, Abang Johari also touched on the state’s economic performance this year, saying the state economy performed favourably supported by a strong growth in both domestic and external demand driven by recovery in the world economy.

“Hence, the projected economic growth of the state for the year is between 3.5 per cent and four per cent.”

Given the current encouraging improvement in the global economy which has created a positive impact on the state economy as a whole, he said the growth prospects for 2018 are anticipated to be more favourable at four per cent to 4.5 per cent.

“Growth will be broad based across the industries and higher external demand is projected to further boost the state economy.”

Source:
courtesy of THE BORNEO POST

by Jonathan Chia, Marilyn Ten, Karen Bong, Georgette Tan, Samuel Aubrey, Matthew Umpang, Jeremy Veno & Jacob Achoi

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