Sabah Tables RM6.4 Bln Budget For 2026

KOTA KINABALU, Dec 12 (Bernama) -- The Sabah government today tabled the state’s Budget 2026, amounting to RM6.402 billion, with an estimated surplus of RM28 million.

Deputy Chief Minister II Datuk Seri Masidi Manjun, who is also the state’s finance minister, said the Sabah government projects revenue of RM6.43 billion next year, making it a surplus budget.

“Although this budget records a slight decrease compared to 2025, after taking into account the estimated revenue that can be collected, the Sabah Budget 2026 still records a surplus of RM28 million,” he said when presenting the budget, themed ‘Driving Development, Prioritising the People’s Well-Being’ at the Sabah state legislative assembly sitting here today.

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For the preparation of the Sabah Budget 2026, Masidi said the Sabah government formulated strategies through engagement sessions with ministries and departments, while also considering various indicators and global economic projections, which are expected to remain uncertain in the coming year.

“This budget also takes into account the implementation of new programmes and initiatives under the first year of the 13th Malaysia Plan (13MP),” he said.

Masidi said Sabah Budget 2026 allocates RM5.202 billion to finance operating expenditure and RM1.2 billion for contributions to the development fund.

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Following adjustments to supply and development expenditure starting next year, he said allocations to cover emolument expenses, recurring expenditure, and special expenditure will decrease by RM19.35 million, or 0.3 per cent, in 2026, compared to the original estimate of RM6.421 billion for 2024.

Regarding revenue projections, Masidi said RM2.614 billion is expected to be contributed through state sales tax, while non-tax revenue will amount to RM2.348 billion, most of which comes from petroleum royalties (RM1.075 billion) and non-revenue receipts (RM1.311 billion).

“A stable financial position is the main foundation of the Sabah government’s ability to cover operating and development expenditure. With a sustainable, progressive, and resilient economy, the people’s quality of life and well-being will surely be assured. Therefore, to ensure that the fiscal position remains strong, the Sabah government has implemented and is implementing several initiatives to increase revenue collection,” he added.

Masidi said a total of RM1.865 billion is allocated for development expenditure, comprising RM1.468 billion from the state and RM397.21 million in the form of federal loans and federal repayments.

According to him, the state development allocation will be distributed by sector, with RM996.47 million, or 67.90 per cent, for the economic sector; RM345.77 million, or 23.56 per cent for the social sector; and RM125.40 million, or 8.54 per cent for the general administration sector.

He said an allocation of RM936.73 million for emolument expenditure will finance the salaries of state civil servants, reflecting an increase of RM32.82 million, or 3.63 per cent, compared to this year’s original budget, due to annual salary increments and the second phase of salary adjustments, which involve increases of three to seven per cent. “This is in line with the implementation of the Public Service Remuneration System, which came into effect on Dec 1, 2024, and the rise in new appointments among Sabah civil servants,” he added.

Masidi said RM2.22 billion, or 34.68 per cent, is proposed for recurring expenditure, including operating works, general administration, and human resources.

For special expenditure, RM2.045 billion is allocated, including for paddy ploughing subsidy payments and water plant management services under outsourced contracts, including water purchases and privatisation-related water expenditure.

“The Sabah state election has just concluded. The newly formed government will carry out the people’s mandate for the next five years. With full commitment and a deep desire to bring change and development to improve the progress and living standards of the people, the Sabah Budget 2026 will be the pillar in realising this theme,” he said.

-- BERNAMA