KUALA LUMPUR, Oct 30: There has been no final agreement between the Federal government and the governments of Sabah and Sarawak regarding the formula for special annual grants to both States under Article 112D of the Federal Constitution.
Minister for Sabah, Sarawak Affairs and Special Functions in the Prime Minister’s Department, Datuk Armizan Mohd Ali, said the Sabah government is firm that the rate should be set based on Article 112C, which refers to 40 per cent net revenue.
“At the same time, among the basis of the Federal government’s stance is that the reviews on the special grant must look at the provisions of the constitution in totality,” he said during the minister’s reply on Budget 2024 in the Dewan Rakyat today.
Article 112D stated that Sabah and Sarawak are entitled to an allocation of special grants annually based on certain measures and subjected to the Federal government’s financial position and that a review shall take place once every five years.
According to Armizan, the Sabah and Sarawak governments reviewed the special grants for the first time in 1970, which set the rate from 1969 to 1973.
Because there is no revised rate that can be finalised, Sabah continues to receive the last rate in 1973, which is RM26.7 million, until 2021, without any increase.
Under Budget 2024, the Federal government has provided an interim allocation of RM300 million for Sabah and Sarawak, respectively. — DayakDaily
