By DayakDaily team
KUCHING, Oct 9: The Federal Government has estimated Budget 2027 at RM459.8 billion, with RM16.2 billion allocated to Sarawak, as announced by Prime Minister Datuk Seri Anwar Ibrahim when tabling Budget 2027 in the Dewan Rakyat today.
He said the Federal allocations for Sabah and Sarawak in 2027 remain the highest.
“Sabah receives RM18.7 billion, compared to RM17.6 billion this year. Meanwhile, Sarawak receives RM16.2 billion, compared to RM15.1 billion.”
Anwar also said the MADANI Government had increased the special grant rate threefold, with the latest interim rate totalling RM1.5 billion.
He said the payment was expected to be settled before the end of the year, while negotiations with Sabah and Sarawak were ongoing to finalise a fair and sustainable annual formula.
Aside from that, he highlighted that a total of 12 MA63 matters have been finalised under MADANI, including:
- Permanent Sabah and Sarawak representatives on the Inland Revenue Board (LHDN).
- Bintulu Port handed over to become a Sarawak-owned port.
- MASWings handed over to Sarawak to become AirBorneo, while the Federal Government still provides RM209 million as a subsidy benefitting 820 thousand passengers in remote areas
- Regulatory power over electricity handed over to Sabah, while the Federal Government still provides RM600 million to ensure supply continuity.
Meanwhile, according to a Bernama report based on the Fiscal Outlook and Federal Government Revenue Estimates 2027 report released today, the Federal Government has estimated Budget 2027 to be at RM459.8 billion, up 3.6 per cent from the revised 2026 allocation, with Operating Expenditure (OE) taking the bulk of it at RM376.8 billion or 81.9 per cent, and RM83 billion earmarked for development expenditure (DE).
It said the OE accounts for 16.2 per cent of GDP, representing a 3.8 per cent increase from the revised 2026 allocation, driven by higher allocations for emoluments, retirement charges, debt service charges (DSC), and supplies and services.
Emoluments remain the largest component of OE at RM111.6 billion, or 29.6 per cent, and are projected to increase by 2.9 per cent, reflecting annual salary increments.
The allocation for subsidies and social assistance is projected to decline marginally by 2.3 per cent to RM72.7 billion, accounting for 19.3 per cent of total OE.
DSC is projected to increase by 6.5 per cent to RM61 billion, accounting for 16.2 per cent of OE, with domestic debt servicing making up 98.4 per cent of the total.
DE is projected at RM83 billion for 2027, including allocations for about 1,500 newly approved programmes and projects.
The Government also remains committed to allocating at least three per cent of GDP to DE, in line with the requirements of the Public Finance and Fiscal Responsibility Act 2023 (Act 850).
A total of RM37.7 billion is allocated to the economic sector to strengthen national competitiveness through the expansion of strategic infrastructure and promotion of investment activities.
State governments are the largest loan recipients at RM503 million, followed by companies at RM463 million, federal statutory bodies at RM58 million, and other organisations and cooperatives at RM2 million.
Loan repayments are projected at RM1.5 billion, with companies accounting for the largest share at RM955 million, followed by state governments at RM419 million, federal statutory bodies at RM120 million, and other organisations and cooperatives at RM6 million, the report said. – DayakDaily
