THE 2025 Budget 2025, centred on the principle of “people first,” is proof of the government's commitment to ensuring the people's well-being, Deputy Prime Minister, Datuk Seri Fadillah Yusof said.
He said it's also a budget to uplift the dignity and uphold the people's rights.
Fadillah, in his reaction to the budget tabled by Prime Minister Datuk Seri Anwar Ibrahim this afternoon, said the government's primary focus for next year's budget is to drive changes through fiscal responsibility and governance.
The changes are rejuvenating the economy by raising the productivity and national income ceiling and enhancing the well-being of the people by elevating living standards and strengthening social security.
Fadillah said Sabah and Sarawak continue to be prioritised in the development allocation, alluding to the RM6.7 billion that is allocated to Sabah and RM5.9 billion to Sarawak.
The allocations are far more than what any states in the peninsula are getting.
Another sign that the two Borneo territories are getting special treatment is the increase in the yearly Special Grant.
The Special Grant is part of the constitutional arrangement under Article 112D of the Federal Constitution, designed to compensate these territories for the loss of revenue that they would have collected on their own if they had not joined Malaysia in 1963.
Under the budget, the federal government proposed to double the special grants to RM600 million for each state next year from the RM300 million the two Borneo territories received this year.
The special grant for Sarawak had not been reviewed since 1969.
Before that, Sarawak was only receiving RM16 million and Sabah RM125.6 million.
Increasing the Special Grant is reportedly aimed at addressing longstanding financial disparities and supporting regional development, particularly in infrastructure, healthcare, and other vital sectors.
Fadillah pointed out that in line with improving infrastructure, the budget proposed dishing out a total of 17 work packages under Phase 1B of the Sabah stretch of the Pan Borneo highway.
He added the Letters of Acceptance have been issued with SST contracts worth RM9.7 billion.
The work packages include the Kota Belud to Kudat stretch, Tawau to Kampung Lot M, and Telupid to Ranau stretches.
While the RM25.1 billion highway is just starting in Sabah, Fadillah said the stretch in Sarawak is expected to be completed by next month.
On another road to link the two territories, the Sabah Sarawak Link Road (SSLR) to bypass Brunei, the deputy prime minister said the budget will finalise four work packages for Phase 2 worth RM7.4 billion.
The prime minister said two packages have already been awarded, with the remaining to be finalised by year-end.
The budget also has an allocation for the expansion of Tawau Airport in Sabah and Miri Airport in Sarawak for RM253 million. - October 18, 2024
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