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Imagine Musa Tabling a RM40 Billion 2014 Sabah Budget – Dr. Jeffrey

Kota Kinabalu:     “The Chief Minister should be able to table a record-breaking RM40 billion Sabah Budget for 2014, if the calls by Malay ultras to chase out Christian Malaysians and Sabah out of the Federation are realized before year-end” said Datuk Dr. Jeffrey Kitingan, STAR Sabah Chief, rueing what could happen to the Sabah economy for 2014 with the CM due to present the 2014 State Budget  .

The RM40 billion budget, a ten-fold increase from the historical RM4.048 billion spent for 2013, will set Sabah’s economy into lift-off into the super league of wealthy nations. 

It may be a record of sorts but RM40 billion revenue is a conservative estimate.  Oil revenue will contribute RM20 billion, half of the total revenue, which is not unexpected given the current world oil prices of above USD100 per barrel.   The federal tax department announced it could collect up to RM40 billion for 2013 from Sabah.

Add to it, all the federal departments’ collections from Sabah could be another several billion ringgit.  The corporate sector could contribute many billions more now that they will have to pay tax on revenue based on income derived from Sabah.  Palm oil revenue could be very significant as Sabah is the world’s third biggest producer of crude palm oil, about 36% of Malaysia’s total of about RM73 billion a year.

Local contribution of State revenue is estimated another RM2.4 billion based on 2013’s estimated revenue of  RM3.828 billion inclusive of RM1.42 billion from federal coffers.  In fact, looking at the figures, the 2014 Budget could exceed RM60 billion all in.

For 2013, the estimated expenditure was RM663.17 million for emoluments, recurrent expenditures of RM1,087.93 million and special expenditures of RM2,337.38 million (which formed the bulk of the RM2.42 billion development expenditure).

Giving a 6% increase, the emoluments will rise to RM702.96 million and RM1,153.21 million for recurrent expenditures, totalling RM1,856.17 million.  

To create a quantum leap in the economy and development, each of the 60 Constituencies could be allocated RM300 million each (RM25 million per month), totalling RM18 billion, a 7-1/2 times increase from 2013.  In other words, Sabah will get development in a single year of what would take 7-1/2 years to achieve given the 2013 Budget.  And to alleviate the people’s financial position, each of the 3.2 million Sabahans will be given a RM1,000 special dividend which will utilize another RM3.2 billion.

The total Budget expenditure will total RM23.05717 billion leaving a surplus of RM16.94283 billion.

Assuming Sabah takes back control of the security forces comprising some 16,000 police, PGA and maritime personnel, which may cost Sabah another RM600 million.    Putting aside RM1.0 billion should be able to cover the additional costs of assuming State control of the security forces including 5,000 army personnel.  

That would still leave a healthy and hefty RM15.94 billion to be added to Sabah’s reserves which is said to be about RM3 billion currently.

Even with prudent financial planning, Selangor, the richest Malaysian state only managed to increase its State reserves from RM700 million in 2008 to RM3 billion in 2013.

Imagine RM15.94 billion reserves in 2014 alone, Selangor would seem poor in comparison and probably take another 20 years to catch up.   The RM15.94 billion reserves will result in each and every Sabahan having a healthy credit balance of RM4,981 compared to the national debt of some RM600 billion or RM21,000 debt for every Malaysian.

In fact, Sabah would be in the company of Singapore and Brunei.  Speaking of Brunei, petrol and diesel price in Sabah could be at RM1.35 per litre, equivalent to Brunei.

The RM40 billion Budget is not wishful thinking.  It will be reality if the federal government agree with and allow the Malay ultras to succeed in chasing out Sabah from the Federation.  It’s something for each and every Sabahan to ponder on. 

1 comment:

  1. That is very possible if Sabah is a country on its own. CM Musa Aman and his Cabinet should convince Najib it is important for Sabah and sarawaki to at least have RM20 billion annual budget on their own. The Federal has no qualm granting it as both states contributed the biggest bulk to Fedral coffers.. But do the leaders of East Malaysia have the will?? I doubt so. KL conformers !


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