KOTA KINABALU: Sabah announced a surplus budget of RM4.596bil for 2022 on Friday (Dec 3), backed by higher revenue collection mainly coming from oil and gas.
Chief Minister Datuk Seri Hajiji Noor said when tabling the budget at the state legislative assembly that the government is projecting RM4.707bil in revenue collection next year, for a surplus of RM110.68mil.
The current high petroleum prices are expected to contribute to an increase in oil royalty next year, he added.
"For 2022, tax revenue is anticipated to contribute 44.5% (RM2.094bil) while non-tax revenue is projected to be 45.4% (RM2.138bil), while the remaining 10.1% (RM475.02mil) comes from non-revenue receipts.
"Petroleum royalty is expected to be the biggest contributor at RM1.2bil or 25.5%, followed by petroleum products sales tax at RM1.1bil or 23.4%, while crude palm oil sales tax is forecast to be RM810mil or 17.2%," he added.
Hajiji said this year’s revenue collection alone has proven favourable, with average prices of crude palm oil and crude petroleum oil higher than anticipated.
"The revised revenue collection this year increased by 9.6% or RM430.67mil from the original estimate.
"Therefore, 2021 has seen new history made in Sabah, with the highest state revenue collection since achieving independence, at RM4.912bil," he said.
Other contributing factors for the increase was the state sales tax for oil and gas products, he added.
"I would like to thank the oil and gas companies especially Petronas for their commitment to execute their commitment to tax payment," he added.
On another note, he also announced that negotiations between the state government, Federal Government and Petronas on their commercial collaboration agreement have been concluded successfully, and it is expected to be signed soon.
"After a long time of legacy issues related to the Petroleum Development Act 1974 underlying our oil and gas-related issues, this agreement will bring greater value and meaning to Sabah.
"Sabah will get greater revenue share, greater participation and greater say in oil and gas-related matters," he added.
Hajiji said a joint study between the Sabah government and Petronas has also been conducted to determine the added value of the gas industry, which can provide long-term economic returns to the state.
