Premier tables record RM15.8 bln expenditure in Sarawak’s RM486 mln surplus budget for 2025

Sarawak flags in front of Sarawak Legislative Assembly catching the late afternoon sun. Photo credit: Karen Bong
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By Karen Bong

KUCHING, Nov 11: Premier Datuk Patinggi Tan Sri Abang Johari Openg has tabled Sarawak’s largest-ever budget with a RM486 million surplus for 2025, setting projected revenue at RM14.2 billion and Ordinary Expenditure at RM13.7 billion.

He said this budget reflects Sarawak’s successful revenue engineering strategies and prudent financial management.

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The proposed budget would increase operating and development expenditure from RM13.6 billion in 2024 to RM15.8 billion in 2025, an increase of RM2.2 billion or 16 per cent.

“The Budget will continue to be expansionary to boost government spending that will further stimulate the State’s economic growth, while making substantial investments in infrastructure and placing the well-being of the rakyat at the forefront of our priorities,” he said when tabling the Supply (2025) Bill, 2024 during the Sarawak Legislative Assembly (DUS) sitting here today.

Abang Johari emphasised that the 2025 Budget themed ‘Together Building a Prosperous Future’, reaffirms the Sarawak government’s commitment to people-centric development, especially for low- and middle-income groups, with measures designed to alleviate financial burdens and advance vital infrastructure projects.

“The proposed RM10.9 billion allocation for development marks Sarawak’s largest development budget to date.

“An Ordinary Expenditure of RM13.7 billion has been allocated, with RM4.9 billion directed toward Operating Expenditure and RM8.8 billion for the Development Fund Account to finance 2025 Development Expenditures budgeted at RM10.9 billion,” he disclosed.

The budget, Abang Johari highlighted, will continue to provide allocation to key sectors to accelerate economic development and eventually make the Sarawak economy strong, robust, and resilient.

The RM4.9 billion operating expenditure covers personnel emoluments (RM1.2 billion); supplies and services (RM1.9 billion); grants and fixed payments, including operating grants to statutory bodies and local authorities, servicing of public debts and payments of gratuities, pensions and scholarships including financial and welfare assistance (RM1.6 billion); asset procurement (RM96 million); and other operating expenses (RM113 million).

He emphasised that revenue is projected to reach RM14.2 billion in 2025, the highest in Sarawak’s history, underscoring the government’s commitment to fiscal sustainability.

Revenue sources include RM6.2 billion in tax revenue, or 44 per cent of the total, mainly from State Sales Tax (SST) at RM5.1 billion, with RM4.1 billion from crude oil, liquified natural gas and other petroleum products; RM820 million from crude palm oil and crude palm kernel oil; RM75 million from lottery; RM60 million from aluminum products; RM29 million from timber products; and the remaining RM6 million from coal.

Additional revenue include RM620 million from raw water royalties, RM100 million from forest royalties, timber premiums, and tariffs, and RM422 million from mining royalties and land rent.

Non-tax revenue, estimated at RM7 billion or 49 per cent, is expected from cash compensation for oil and gas rights (RM2.7 billion), dividend income (RM2.9 billion), interest income (RM853 million), land premium (RM400 million), cash compensation in lieu of import and excise duties on petroleum products (RM120 million), and others including licences, services fees, permits and rentals (RM26 million).

Non-revenue receipts are anticipated at RM32 million mainly from unclaimed deposits, overpayment recovered, and disposal of vehicles. Federal grants and reimbursements are projected at RM937 million, benefitting from the federal government’s increase in the interim Special Grant rate for Sarawak from RM300 million to RM600 million starting next year. — DayakDaily

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