KUCHING, Oct 12 — Sarawak Chief Minister Datuk Patinggi Abang Johari Openg today said the state Budget 2022 will incur a deficit of RM610 million, with an estimated revenue of RM10.036 billion and expected Ordinary Expenditure of RM10.646 billion.
He said it was critical, given the devastating impact of the Covid-19 pandemic on the state economy and people’s livelihoods, for the state government to embark on a fiscal expansionary policy to boost productivity and revive the economy.
“I am convinced that with this direction, we will ride through this difficult and challenging period to recover stronger and build back better,” he said when sharing the state Budget 2022 during a special meeting with state assemblymen at the Borneo Convention Centre Kuching (BCCK) here.
“The consequences of not making any intervention measures in terms of significant public investments and spending may result in severe and disastrous repercussions on the people’s well-being and economic prosperity in the future,” Abang Johari, who is also the state finance and economic planning minister, stressed.
He said the state Budget 2022 is centred on the theme “United in Building a Resilient, Inclusive and Progressive Society”.
“Therefore, the state Budget 2022 is framed across eight strategic thrusts aimed at accelerating economic growth, stimulating private investments, generating jobs through public investments, and building a more competitive and income-generating economy,” he said.
On the state government’s estimated revenue for 2022 projected at RM10.036 billion, he said RM4.0907 billion, or 49 per cent, would come from State Sales Tax (RM3.876 billion), of which RM3.162 billion will be from crude oil, liquefied natural gas and other petroleum products and RM600 million from crude palm oil and crude palm kernel oil.
He added that the non-tax revenue estimated at RM4.844 billion, or 48 per cent, would be mainly derived from the RM2.108 billion of the 5 per cent cash compensation in lieu of oil and gas rights or royalty on oil and gas.
The chief minister said, under Ordinary Expenditure, a sum of RM10.646 billion would be allocated for 2022, consisting of RM4.046 billion for operating expenditure, while RM6.6 billion would be appropriated to the Development Fund Account to finance the implementation of various development programmes and projects.