By Matthias Hermes
KOTA KINABALU: STAR Sabah chief Datuk Dr Jeffrey Kitingan has proposed the Chief Minister to table a record-breaking RM40 billion Sabah Budget for 2014.
Such a proposal was made assuming the calls by Malay ultras to chase out Christian Malaysians and Sabah out of the Federation are to realize before year-end.
Jeffrey (photo) said the RM40 billion budget, a ten-fold increase from the historical RM4.048 billion spent for 2013, will set Sabah’s economy into lift-off into the super league of wealthy nations.
“It may be a record of sorts but RM40 billion revenue is a conservative estimate. Oil revenue will contribute RM20 billion, half of the total revenue, which is not unexpected given the current world oil prices of above USD100 per barrel.
“The federal tax department announced it could collect up to RM40 billion for 2013 from Sabah,” he pointed out. (It must be pointed out that the Sabah IRB has since clarified that the figure of RM40 billion was erroneously quoted and have since said the amount is much lesser).
In addition, all the federal departments’ collections from Sabah could be another several billion ringgit.
He further noted that the corporate sector could contribute many billions more now that they will have to pay tax on revenue based on income derived from Sabah.
“Palm oil revenue could be very significant as Sabah is the world’s third biggest producer of crude palm oil, about 36% of Malaysia’s total of about RM73 billion a year,” he said.
He estimated that local contribution of State revenue would be another RM2.4 billion based on 2013’s estimated revenue of RM3.828 billion inclusive of RM1.42 billion from federal coffers.
“In fact, looking at the figures, the 2014 Budget could exceed RM60 billion all in,” he said.
“For 2013, the estimated expenditure was RM663.17 million for emoluments, recurrent expenditures of RM1,087.93 million and special expenditures of RM2,337.38 million (which formed the bulk of the RM2.42 billion development expenditure).
“Giving a 6% increase, the emoluments will rise to RM702.96 million and RM1,153.21 million for recurrent expenditures, totalling RM1,856.17 million,” he added.
The Bingkor assemblyman also suggested that to create a quantum leap in the economy and development, each of the 60 state constituencies could be allocated RM300 million each (RM25 million per month), totalling RM18 billion, a 7-1/2 times increase from 2013.
“In other words, Sabah will get development in a single year of what would take 7-1/2 years to achieve given the 2013 Budget.
“And to alleviate the people’s financial position, each of the 3.2 million Sabahans will be given a RM1,000 special dividend which will utilize another RM3.2 billion.
“The total Budget expenditure will total RM23.05717 billion leaving a surplus of RM16.94283 billion,” he said.
Assuming Sabah takes back control of the security forces comprising some 16,000 police, PGA and maritime personnel, which may cost Sabah another RM600 million, Dr Jeffrey opined that putting aside RM1.0 billion should be able to cover the additional costs of assuming State control of the security forces including 5,000 army personnel.
“That would still leave a healthy and hefty RM15.94 billion to be added to Sabah’s reserves which is said to be about RM3 billion currently,” he said.
He quipped that even with prudent financial planning, Selangor, the richest Malaysian state only managed to increase its State reserves from RM700 million in 2008 to RM3 billion in 2013.
“Imagine RM15.94 billion reserves in 2014 alone, Selangor would seem poor in comparison and probably take another 20 years to catch up.
“The RM15.94 billion reserves will result in each and every Sabahan having a healthy credit balance of RM4,981 compared to the national debt of some RM600 billion or RM21,000 debt for every Malaysian,” he pointed out.
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