Sabah unveils highest ever Budget 2025 with RM6.421 bln

KOTA KINABALU (Nov 14): RM6.421 billion in estimated supply expenditure with RM6.445 in projected revenue have been proposed for the 2025 Sabah Budget, which records a surplus of RM24.08 million.

State Finance Minister Datuk Seri Masidi Manjun said this marks the largest proposed budget in Sabah’s history so far, in line with the state government’s efforts to realise the goals of the 2025 Sabah Budget theme, “Prosperous Sabah, Prosperous People”.

“The well-being of the people is our core, and sustainable economic development and growth are important for ensuring the prosperity and well-being of the state.

“Taking into account revenue projections next year, the Sabah Government has drafted the next year’s State Budget emphasising on prudent spending and wastage prevention.

“Therefore, the 2025 State Budget is anchored on the concept of ‘pomogunan do sogigisom’, a Dusun phrase meaning sustainable development through unity, ” he said when unveiling the 2025 Sabah Budget at the State Legislative Assembly here today.

Masidi said of the total budget, RM5.441 billion will be allocated for Operating Expenditure, from which RM980 million will be allocated for contributions to the Development Trust Fund, which is an overall RM719.90 million or 13 per cent increase when compared to 2024 initial estimates.

Emolument Expenditure is proposed at RM903.91 million, an uptick of RM95.85 million or 12 per cent compared to last year due to an increase in annual salaries, eight per cent salary adjustment, in line with the implementation of the Public Service Remuneration System (SSPA) as well as the increase of new civil servants recruitment.

Recurring Expenditure is proposed at RM2.27 billion, equivalent to 35 per cent, with an increase of RM66.90 million or three per cent compared to last year’s initial allocation, for among others funding state government scholarships, prevention and rehabilitation works for natural disasters, expenditure for Native Chiefs in Sabah, as well as maintenance for government buildings.

Special Expenditure is proposed at RM3.247 billion, equivalent to 51 per cent, with an increase of RM557.14 million or 21 per cent from last year, in particular to better address infrastructure issues, such as restoring water supply and managing water treatment plant services under outsourcing contracts, maintenance of roads, bridges and slopes, etc.

Masidi said also of the total budget, RM1.299 billion will be allocated for Development Expenditure, which includes state allocation of RM976.50 million and federal allocation of RM322.97 million in the form of federal loans and reimbursables, with distribution of sectors being economic (RM558.81 million or 57 per cent), social (RM395.13 million or 41 per cent) and general administration (RM22.55 million or two per cent).

“By strategically allocating funds to productive sectors under the 2025 State Budget, the government is confident that the state’s economy will be further strengthened, enhancing the state’s prosperity and the people’s wellbeing,” he said.