http://www.theborneopost.com/2013/06/21/kl-gives-more-than-it-gets-cm/
KL gives more than it gets – CM
Posted on June 21, 2013, Friday
THE
federal government has allocated more to Sabah than the revenues it has
collected from the state, said Chief Minister Datuk Seri Musa Aman.He said in 2012 alone, the federal government’s management and development expenditure in Sabah amounted to RM9, 083.43 million, an increase of RM926.49 million (11%) compared to RM8,156.94 million in 2011.
“With such a close relationship between the state and central governments, we believe the federal government will provide more development allocations for Sabah,” he said in winding up the debate on the Head of State’s policy speech for the Finance Ministry.
Musa, who is also the Finance Minister, thus shot down the suggestion by Bingkor assemblyman Datuk Dr Jeffrey Kitingan that the state government should demand 40 per cent or two-fifths of the central government tax revenue collection of the state as stated under Schedule Table 10 of the Federal Constitution.
He pointed out that it was clear that the proposal by Jeffrey was misplaced as the Special Grant payment cited by the latter had been amended as allowed under Article 112 D of the Federal Constitution.
“For the information of this august House, talks are held with the federal government on the matter from time to time,” Musa added.
Based on information received from the Accountant General Department (Sabah), Musa said the total revenue for the federal government from the state in 2012 was RM4, 429.53 million.
Of this total, about 69.6 per cent or RM3, 085 million was the collection of the Federal Ministry of Finance, in particular the Inland Revenue Board. About 18.5 per cent or RM818.5 million was the collection of the Royal Malaysian Customs Department, while the rest were from the Ministry of Transport, the Department of Immigration and other federal departments.
“According to records of the Accountant General Department (Sabah), revenue collection has increased by RM683.44 million (18%) compared to RM3, 746.09 million in 2011.
“I am pleased to inform this august House that the federal government has provided bigger allocation to Sabah than the revenues it received from the state,” he said.
On the issue of oil royalty being raised by Jeffrey and other members of the House, Musa pointed out that the five per cent cash payment received by the state is based on the agreement that was signed between the state government and Petroleum Nasional Berhad (PETRONAS) on June 14, 1976.
“As explained, from the 10 per cent petroleum-derived value in Sabah, five per cent is payable to the state and five per cent to the federal government. The remaining 90 per cent is used by Petronas and its partners to meet the high costs of oil exploration and production.
” Although the oil royalty rate is set at five per cent, the state government has enjoyed increased payments from RM365.4 million in 2007 to RM941.25 million in 2012, each based on the production of 28,156,504 barrels in 2007 and 49,737,978 barrels in 2012,” Musa added.
As such, he said the state government has a more orderly and consensus approach in addressing these issues.
“For example, Petronas has invested in the state through the development of Sabah Oil and Gas Terminal (SOGIT). The construction of SOGIT backed by the 300 Megawatt Combined-cycled Gas Power Plant in Kimanis is intended to increase electricity generation capacity to accommodate growing demand.
“In addition, through the assistance and cooperation of the federal government and Petronas, the state government is also developing oil and gas-based industries, known as the “Sipitang Oil and Gas Industry Park (SOGIP)”,” he said, adding that there were other projects now in progress such as SAMUR involving investment of RM2 billion and SAMUR 2 with investments of RM2.6 billion.
On the calls for increased allocation for the purpose of religious development in the state, Musa said the state government had never neglected the issue of religious development as a whole.
“Each year, adequate allocation is always made available for such purpose,” he said, and reminded members of the House including those from the opposition that “we have a similar vision and mission, which is to protect and serve the people and the areas we represent.”
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