KOTA KINABALU: The State Government has proposed an estimated supply expenditure of RM6.402 billion for 2026, shaped by engagement with ministries, economic forecasts and the first year of the Thirteenth Malaysia Plan, Deputy Chief Minister cum State Finance Minister Datuk Seri Masidi Manjun said when tabling the Budget at the State Legislative Assembly on Friday.
Of the total, RM5.202 billion is set aside for operational spending and RM1.2 billion for contributions to the Development Fund, with operational expenditure trimmed marginally by RM19.35 million following a restructuring of spending categories beginning next year, he said.
Emoluments will rise to RM936.73 million to cover civil servants’ salaries, reflecting annual increments, a second phase pay revision of three to seven per cent effective December 2024 and new recruitment, Masidi said.
Recurrent expenditure is pegged at RM2.22 billion while special expenditure is reduced to RM2.045 billion after several items were shifted to development spending, with remaining allocations covering essentials such as paddy subsidies, outsourced water treatment services and agricultural programmes, he said.
On development, Masidi said RM1.865 billion has been proposed for 2026—largely for the economic sector—with the 13 Malaysia Plan (13MP) ceiling set at RM12.02 billion to fund 1,173 projects, including 932 new initiatives, marking the largest development allocation in Sabah’s budget history.
