STATE BUDGET PROPOSAL 2015 AS PRESENTED BY CHIEF MINISTER
TAN SRI ADENAN SATEM ON NOV 10, 2014
Budget Objectives and Strategies for 2015
In our efforts to achieve a greater and more balanced
development and to sustain a healthy economic growth, the proposed State Budget
for 2015 is drawn out based on the objectives and strategies as follows :
(a) Development-Biased Budget
Of the proposed budget, RM4,546 million or about 71% is for
development purposes, and RM1,813 million or 29% is for operating expenditure.
This level of expenditure is expected to generate a fairly high level of
economic activities in order to sustain the level of economic growth in the State
and ultimately narrowing the overall development gap between Sarawak and
Peninsular Malaysia.
More than 50% of the development allocation of the proposed
budget is for the implementation of programmes and projects in the rural areas.
This is to ensure a long term balanced distribution of development throughout
the State in line with our continuous efforts to narrow the development gap
between the urban and rural areas;
(c) Surplus Budget
This is in line with the State’s continuous effort to
consolidate its fiscal and financial position in ensuring long term financial
sustainability;
(d) Productivity and Efficiency Driven Growth
The Budget will continue with the strategy of managing its
operating expenditure prudently. Concerted effort have been taken continuously
to reduce wastage and optimize the use of available resources, such as
equipment, facilities and human capital. Growth must continue to be driven by
productivity and efficiency;
Enhancing Government Delivery System
The Budget will continue to give special focus to enhance
the effectiveness of the State financial management and the efficiency of its
delivery system. This is to ensure efficient and smooth operation of the
government’s administrative and development machineries.
Continuing the State Economic Transformation
The Budget will continue to give priority to economic
activities and productive sectors in our continuous efforts to implement the
long term social and economic restructuring and transformation plan of the
State; and
Continuing To Facilitate Private Sector Participation
The Budget will continue to facilitate the private sector as
the main engine of economic growth. In the light of the Budget Objectives and
Strategies outlined earlier, I shall now proceed to deliberate on the State
Budget Proposal forthe coming year.
Revenue Estimates for 2015
In 2015, the State revenue is projected at RM5,178 million
which will be derived from the following sources:
(a) Tax Revenue is expected to be at RM1,178 million
comprisesthe following:- (i) Forest royalty and premium, RM568 million; (ii)
Sales tax, RM440 million of which RM320 million is expected from Crude Palm Oil
and Crude Palm Kernel Oil while RM120 million from lottery; and (iii) Royalties
from raw water and mining, land rents and others, RM170 million.
(b) Non-tax revenue is expected to be at RM3,856 million
comprises the following major components:
(i) Compensation in lieu of oil and gas rights, RM1,716
million;
(ii) Compensation in lieu of import and excise duties on
petroleum products, RM120 million;
(iii) Land premium, RM350 million;
(iv) Dividend income, RM755 million;
(v) Interest income,
RM735 million; and
(vi) Others, including licences, permits and rentals, RM180
million.
(c) Non-Revenue Receipt is expected to be at RM11 million,
mainly from forest liquidated damages, disposal of vehicles and recovery of
overpayment; and
(d) Federal grants and reimbursements is expected to be at
RM133 million
Ordinary Expenditure for 2015
Tuan Speaker, the government proposes to allocate a sum of
RM4,813 million for ordinary expenditure for 2015. Of this total allocation,
RM3,000 million will be appropriated to the Statutory Funds Account, to finance
development programmes and projects. The balance of RM1,813 million will be for
operating or recurrent expenditure.
The proposed allocation of RM1,813 million for operating
expenditure next year is an increase of RM106 million or 6% over the revised
expenditure of RM1,707 million allocated forthis year.
Out of the amount proposed for operating expenditure in
2015:
(a) RM665 million forpersonnel emoluments;
(b) RM586 million forsupplies and services;
(c) RM530 million for grants and fixed payments, including
operating grants to government agencies, servicing of public debts and payments
of gratuities, pensions and scholarships;
(d) RM28 million forthe procurement of assets; and
(e) RM4 million for other operating expenses.
Development Estimates for 2015
The Government has taken into consideration among others,
its commitment to complete the on-going projects that are under implementation,
as well as the capacity of the State Government agencies to implement projects
during the year. It is proposed that a sum of RM4,546 million be allocated for
next year to finance various programmes and projects under theTenth Malaysia
Plan which will be in its final year of implementation.
Of the total provision for development expenditure, RM4,038
million will be funded by the State while RM508 million will be financed by the
Federal Government through loans and reimbursements.
Distribution of Development ExpenditureEstimates
The proposed allocation for development expenditure
estimates is on the basis of the implementation plan for development programmes
and projects under the Tenth Malaysia Plan as well as financial commitments and
obligations for the year. The proposed development budget is fairly distributed
to ensure a balanced development throughout the State. Thus far, the
socio-economic development of the State has progressed positively through a
comprehensive planning and development strategies over the years.
In our efforts to ensure balanced distribution of development
throughout the State, we will continue to undertake proactive measures,
including the development of physical infrastructure, especially in the rural
areas, to narrow the development gap with the urban areas. In this regards, the
State would intensify the development of the rural areas especially those with
potentials.
With proper planning, the development of these areas will
bring higher economic activities and generate greater benefits to our people.
This is aimed at further uplifting the quality of life as well as attracting
more investments into these areas. The State will continue to provide funding
for the development of the required infrastructure including facilities and
amenities in these areas.
Tuan Speaker, out of the total proposed development
allocation for next year:
(a) RM1,648 million for implementation of industrial and
commercial programmes and projects;
(b) RM583 million for general administration which is meant
for improvement of government facilities to further enhance public delivery
system;
(c) RM408 million for public utilities, especially for the
expansion and upgrading of various water supplies including in the rural areas.
This provision also include loans to the water authorities of the State;
(d) RM148 million for agriculture and land development
programmes such as plantation development, drainage and irrigation, assistance
to farmers, veterinaries, fisheries, agricultural research and forestry;
(e) RM1,362 million for social development and community
services including housing and resettlement schemes, and sports and
recreational facilities; and
(f) RM397 million for transport and communications
especially for roads, bridges and ports.
Federal Funding
Apart from our effort at the State level, we would continue
to seek for more funding from the Federal Government particularly to finance
infrastructure projects such as roads and utilities especially for the rural
areas. The capital expenditure required for implementing projects such as
providing accessibility, upgrading roads, supplies of electricity and treated
water and other public amenities in the rural areas are quite substantial.
We strongly believe that it would be most difficult for any
State in the country to have the level of financial capacity to undertake such
development on its own. If the State of Sarawak were to undertake such
development, it will not be able to realize such development at the speed and
the rate that we aimed to achieve. With our cordial relationship with the
Barisan Nasional Government at the national level, I am confident that the
Federal Government would continue to support the State with more funding in the
development of such facilities and amenities particularly in the rural areas.
Budget Surplus for the Year 2015
The proposed 2015 State Budget is expected to generate a
surplus of RM365 million with an estimate total revenue of RM5,178 million
against a total proposed Ordinary Expenditure of RM4,813 million. It is
imperative that we continue with a balanced or surplus budget policy to ensure
that the financial position of our State remains strong and sustainable in the
long run.
We need to spend within our means to ensure that we will always
have sufficient financial reserves to meet future challenges.
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