Sarawak projects RM15.091 bln record revenue for 2027 with RM246 mln surplus budget

1 hour ago 4

ADVERTISE HERE

By Amanda L

KUCHING, Oct 12: Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has announced that the State’s 2027 ordinary expenditure is projected at RM14.845 billion, against estimated revenue of RM15.091 billion, resulting in a budget surplus of RM246 million.

The 2027 Sarawak Budget also provides an allocation of RM10.098 billion for development purposes. The State is expected to generate its highest revenue at RM15.091 billion next year, an increase of RM2.042 billion, or 16 per cent, over the 2026 estimate of RM13.049 billion.

The projected revenue marks the highest ever expected to be recorded by the State and represents more than a two-fold increase over a 10-year period, compared to the RM6.864 billion recorded in 2017.

According to Abang Johari, for 2026, Sarawak’s revenue is expected to reach RM13.571 billion, an upward revision of RM552 million, or four per cent, from the original estimate of RM13.049 billion.

He said Sarawak’s revenue collection for 2026 stood at RM10.732 billion as of September, equivalent to 82 per cent of the year’s projected target.

Abang Johari attributed the upward revision mainly to the Federal Government’s special grant being increased from RM600 million to RM1.5 billion, effective this year.

The proposed ordinary expenditure of RM14.845 billion is RM1.94 billion higher than the RM12.905 billion originally allocated for 2026, although the latter was subsequently revised upwards to RM14.348 billion, an increase of RM1.443 billion, or 11.2 per cent.

For 2026, RM9.434 billion, or 66 per cent of the revised RM14.348 billion allocation, had been utilised as of September.

“Of the amount spent, RM3.959 billion went towards operating expenditure, while RM5.475 billion was appropriated to Statutory Funds.

“For development expenditure, RM5.604 billion out of the allocated RM9.663 billion, or 58 per cent, had been spent over the same period,” he added.

With development projects gaining momentum and implementation intensifying, expenditure is expected to increase further towards the end of the year.

Revenue drivers for 2027

In 2027, Abang Johari said revenue is expected to be derived from several major sources, with tax revenue expected to contribute RM6.4 billion, or 43 per cent of total expected revenue.

Tax collection is expected to comprise mainly State Sales Tax (SST) of RM4.6 billion, of which RM3.4 billion is from crude oil, liquefied natural gas and other petroleum products; RM995 million from crude palm oil and crude palm kernel oil; RM70 million from lottery; RM80 million from aluminium products; RM32 million from ferro-alloys; RM20 million from timber products; and RM16 million from polysilicon.

Tax is also expected to be collected from RM1.3 billion in raw water royalties, RM193 million from forestry, and RM317 million from mining royalties, land rents and others.

Non-tax revenue is estimated at RM6.7 billion, or 45 per cent, mainly derived from RM2.57 billion in cash compensation in lieu of oil and gas rights, RM2.6 billion in dividend income, RM746 million in interest income, RM350 million in land premium, RM120 million in cash compensation in lieu of import and excise duties on petroleum products, and RM355 million from other sources, including licences, service fees, permits and rentals.

Non-revenue receipt is expected to be RM34 million, mainly from liquidated ascertained damages, compounds, fees and penalties; and Federal Grants and Reimbursements are projected to reach RM1.87 billion mainly from the interim payment of Special Grant amounting to RM1.5 billion.

Priorities on development and future generations

With Sarawak Budget 2027 carrying the theme “Together Building Prosperity and Securing Our Futures”, the ordinary expenditure of RM14.845 billion comprises RM5.747 billion in operating expenditure allocated to several matters including RM2.024 billion, or 35 per cent, is for supplies and services, while RM1.976 billion, or 34 per cent, is for grants and fixed payments which includes operating grants to Statutory Bodies and Local Authorities, servicing of public debts, and payments of gratuities, pensions and scholarships, including financial and welfare assistance, among others.

A further RM9.098 billion is appropriated to the Development Fund account, ensuring adequate financing for the 2027 Development Expenditure.

A total of RM300 million is also expected to be allocated to the Sarawak Sovereign Wealth Future Fund (SSWFF) next year, ensuring that a portion of the State’s revenues are preserved to benefit future generations.

Abang Johari also announced that the 2027 Sarawak Budget provides an allocation of RM10.098 billion for development purposes, representing an increase of RM826 million, or nine per cent, from the original estimated development expenditure this year.

“This is among the highest development budget, reflecting our firm commitment to fulfilling and delivering the needs of our rakyat. More than just figures, this significant allocation demonstrates the GPS Government’s strong determination to make Sarawak a better place to live, a State that is prosperous and developed, where every Sarawakian can look forward to a brighter future.” — DayakDaily

Read Entire Article