Lions' share of allocation for commerce, industrial sector; focus on sustaining economic growth
Kuching: The state's revenue is expected to exceed the total proposed expenditure by RM83 million in Budget 2013 tabled by Chief Minister Pehin Sri Abdul Taib Mahmud at the State Legislative Assembly Complex yesterday.
The budget will continue to be development biased with RM3.4 billion or about 69 per cent of the total budget for development and RM1.5 billion or 31 per cent for operating expenditure.
The projected budget surplus is on the basis of an estimated total revenue of RM4.150 billion against a total ordinary expenditure amounting to RM4.067 billion, which includes appropriation to the Development Fund Account (DFA).
Of the total estimated revenue, RM975 million or 23 per cent is expected to come from tax revenue while RM3 billion or 73 per cent non-tax revenue, said Taib.
"Non-Revenue Receipts is expected at RM9 million, which is mainly from disposal of assets, and federal grants and reimbursements are expected at RM119 million."
Taib, who is also Finance Minister, said RM1.5 billion of the total proposed ordinary expenditure would be for recurrent expenditure while the balance of RM2.5 billion for the DFA for financing of development programmes and projects.
"The budget would continue to emphasise on prudent management of our operating expenditure, improving our productivity and enhancing our competitiveness."
Deliberating on the development estimates for 2013, he said out of the RM3.4 billion proposed amount, RM3.2 billion would be funded by the state while RM148 million financed by the federal government by way of reimbursable grants and loans.
He added that the allocations were for settlement of contractual payments for projects under the 10th Malaysia Plan (10MP), on-going programmes and projects as well as other commitments of the state, and priority and high impact projects.
In a break-down, Taib said RM2 billion of the total proposed development expenditure would be for commerce and industrial sector and RM429 million for general administration, RM333 million (social development and community services), RM220 million (transport and communications), RM214 million (public utilities) and RM168 million (agricultural programmes).
"The sectoral allocation as proposed only shows a partial picture of the overall public sector expenditure in the state."
He stressed that the state government would continue seeking more funding from the federal government under the 10MP especially for building roads, providing utilities and social amenities in the rural areas.
"The 2013 State Budget is formulated with the view to sustain the desired level of economic growth with equitable distribution and at the same time maintaining conducive climate for business and investment.
"It also focuses on the development of rural areas to narrow the development gap between the rural and urban areas.
"This will provide the foundation for the transformation of the state economy towards that of high income to benefit all the rakyat."--Courtesy of The Borneo Post Online