KOTA KINABALU: Sabah is expected to have a surplus budget in 2026, with state revenue estimated at RM6.402bil and operating expenditure at RM6.402bil, says Finance Minister Datuk Seri Masidi Manjun.
When tabling the Sabah 2026 Budget on Friday (Dec 12), he said after factoring in the estimated revenue collection, the proposed budget would have a surplus of RM28mil despite a slight reduction compared to the 2025 budget.
The budget, themed "accelerating development, prioritising the people's well-being"' has been formulated based on the aspirations and commitments of the state government to accelerate Sabah's development for the people's well-being, with allocations focused on five key pillars.
The first is to expedite further development of productive sectors, including luring investments to stimulate economic growth and generate Sabah's income while the second is to address socioeconomic imbalances and improve standard of living through inclusive approaches, said Masidi.
The state also aims to empower human capital development by enhancing knowledge, skills, productivity and innovation, while ensuring a better quality of life for the people.
It wants to enhance development, particularly basic infrastructure, utilities and public amenities to support economic growth and development and strengthen the state's capacity, management and delivery system efficiency, he said.
Masidi listed the allocation of supply and development expenditures for its various state ministries, namely:
Ministry of Finance: RM2.899bil (for supply) and RM209.02mil (for development)
Ministry of Works and Utility: RM1.122bil (supply) and RM534.28mil (development)
The Chief Minister's Department: RM792.83bil (supply) and RM190.58mil (development); Ministry of Agriculture, Fisheries and Food Industry: RM416.76mil (supply) and RM143.09mil (development)
Ministry of Rural Development: RM122.72mil (supply) and RM195mil (development).
Ministry of Local Government and Housing: RM230.26mil (supply) and RM27.19mil (development)
Ministry of Education, Science, Technology and Innovation: RM186.54mil (supply) and RM18.18mil (development)
Ministry of Women, Health and People's Wellbeing: RM160.36mil (supply) and RM13.19mil (development)
Ministry of Tourism, Culture and Environment: RM135.75mil (supply) and RM38.70mil (development)
Ministry of Youth, Sports Development and Creative Economy: RM88.01mil (supply) and RM10.05mil (development)
Ministry of Industry, Entrepreneurship and Transport: RM105.67mil (supply) and RM88.36mil (development).
Masidi said charged expenditure is calculated at RM91.05mil for supply while expenditure not included under ministries would be RM50.03mil (supply).
He said the state had taken steps to reduce gaps between supply and development expenditure, with supply expenditure recording an 86% ratio in 2024, decreasing to 85% in 2025, and is proposed to further reduce to 78% in 2026.
"These efforts will continue to be intensified to ensure that development expenditure is expanded, providing a significant and inclusive impact on Sabah's development," he said.
The state assembly will continue with debates on the budget from Monday (Dec 15) to Wednesday (Dec 17).
