Kota Kinabalu: Paginatan Assemblyman Datuk Rusdin Riman urged the State Government to formally recognise the State’s 40 per cent entitlement as part of its revenue, stressing that a stronger fiscal position is essential for development to be effectively delivered to the people.
Rusdin said the Budget theme, “Driving Development, Prioritising People’s Well-being,” was timely as it marked the conclusion of the Sabah Maju Jaya (SMJ) 1.0 plan while paving the way for a more comprehensive SMJ 2.0 framework.
He highlighted a key fiscal achievement in the 2026 Budget, noting that with an estimated total expenditure of RM6.402 billion and a projected surplus of RM28 million, the State successfully reduced its operating expenditure ratio from 85 per cent to 78 per cent.
“This reduction in operating expenditure has allowed development expenditure to increase to 22 per cent,” he said.
However, Rusdin cautioned that Sabah’s development spending remained low compared with other states, particularly Sarawak, which he said continued to serve as a benchmark.
“For comparison, Sarawak’s development expenditure in 2026 stands at 56.6 per cent, amounting to RM7.3 billion,” he said.
Rusdin welcomed the allocation to the Ministry of Works and Utilities, which received RM1.122 billion for supply expenditure and RM534.28 million for development expenditure, describing it as significant in addressing long-standing grassroots issues.
“These allocations are crucial for repairing damaged roads, improving rural access and strengthening the stability of clean water supply, which are basic needs that have long been demanded by the people,” he said.
On Sabah’s fiscal position, Rusdin said it could not be separated from the State’s constitutional rights. He said the recent High Court decision on the 40 per cent Special Grant was more than a legal victory.
“It affirms Sabah’s right under the Constitution to receive what is due so that basic development can be implemented more comprehensively,” he said.
Rusdin said he fully supported proposals by the Tanjung Aru and Sekong assemblymen to include the 40 per cent grant as part of state revenue and to record it as receivables from the Federal Government.
“If the proposal is to record a token vote in the State Budget, I see no issue in placing a larger amount because this is indeed our right,” he said.
He warned that without a strong fiscal position, Sabah’s development would continue to move slowly.
“This is not about politics. This is about the Government’s capacity to meet the needs of the people,” he said, expressing hope that follow-up negotiations between the State and Federal governments would finally resolve long-standing funding shortfalls in line with the Federal Constitution and the Malaysia Agreement 1963.
On economic growth, Rusdin welcomed the Budget’s emphasis on agriculture, industry and tourism as key sectors for job creation, particularly for youths.
“These sectors can generate employment while improving the skills of young people,” he said, adding that efforts to strengthen food security through the paddy planting revolution, permanent food production zones and incentives for farmers, fishermen and livestock breeders were practical and urgently needed.
“This is not merely policy; it is a pressing necessity for the people,” he said.
