Malaysia

Sabah should use accumulated federal debt to fund budget: assemblyman

Putrajaya still owes state unpaid 40% of revenue over the years, says Datuk Ewon Benedick

Updated 4 years ago · Published on 06 Dec 2021 6:31PM

Sabah should use accumulated federal debt to fund budget: assemblyman
Datuk Ewon Benedick suggests that the Sabah government table a supplementary budget in the first quarter of next year to implement game-changing projects in the state. – The Vibes pic, December 6, 2021

by Rebecca Chong

KOTA KINABALU – The Sabah government should use the federal government’s accumulated debt to the state under Article 112C and 112D to fund the state’s post-pandemic budget, said Kadamaian assemblyman Datuk Ewon Benedick (Kadamaian-Upko).  

He told the state assembly that the federal government still has “accumulated debt” for failing to provide Sabah 40% of federal revenue over the years.

Benedick, in debating the state’s Budget 2022, suggested that the Sabah government table a supplementary budget in the first quarter of next year to implement game-changing projects in the state.  

“I was hoping for the state budget to reflect the recovery and revival of Sabah’s economy and have a reformation agenda on the matter.

“However, this is not prominent in the budget. I proposed that the state have a supplementary budget especially for post-pandemic revival projects.”

He urged the state government to be aggressive in ensuring that the federal government would conduct its constitutional responsibility under Article 112C and 112D of the federal constitution.  

“If we calculate our returns from the 40% federal revenue owed to Sabah, it comes up to about RM5 billion. The special budget could be tabled with this allocation. 

“The federal government can then write off the accumulated debt owed to the state.”

He proposed that the special budget should include projects to upgrade rural roads, infrastructure and health facilities, schools, as well as water and electricity supplies and telecommunication networks.  

Benedick also proposed the setting up of the Sabah Economic Recovery Council and special committees for each state ministry to serve as checks and balances for the budget’s implementation. – The Vibes, December 6, 2021

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