KUALA LUMPUR: The PH government remains committed in prioritising the needs of Sabah and Sarawak through various goodies announced in the 2020 Budget tabled yesterday.
Finance Minister Lim Guan Eng (pic) said for 2020, Sabah and Sarawak will receive the largest portion of development expenditures amounting to RM5.2 billion and RM4.4 billion respectively.
From 2020, the federal government intends to increase the Special Grant to Sabah and Sarawak under Section 112D of the Federal Constitution.
He said that the rate set by the previous government was RM26.7 million for Sabah and RM16 million for Sarawak per annum was not reviewed and remained unchanged since 1969.
“For the first time, the PH government proposes to increase the rate, doubling it to RM53.4 million for Sabah and RM32 million for Sarawak,” he added.
Lim said that to reflect its care and concern for the people of Sabah and Sarawak, the government plans to double the rate to RM106.8 million to Sabah and RM64 million for Sarawak within 5 years.
“Approximately RM587 million will be allocated for rural water projects, out of which RM470 million for Sabah and Sarawak to meet the nation’s target of 99% access to clean water.”
The government will also spend RM500 million on rural electrification benefitting more than 30,000 rural households, with a majority living in both states.
“To ensure that rural communities, especially in Sabah and Sarawak are able to obtain necessities including LPG and petrol at reasonable prices, the government is allocating RM170 million towards subsidising the cost of transportation and distribution for basic goods to rural areas,” he said.
Lim added that the government remains committed to completing the Pan Borneo Highway project, an important catalyst to economic growth in Sabah and Sarawak. – Bernama
