Friday, November 18, 2011

Sabah Budget 2012

Today, in less than a couple of hours time, Chief Minister Datuk Seri Musa Aman will table the State Budget for 2012, during the state assembly sitting.

Chief Minister, Datuk Musa Aman, last year during the 2011 Budget tabling.

Among the highlights in putting the people's well-being first (as mentioned in the budget pre-tabling press statement) , are:

a) emphasizing on agriculture, tourism and manufacturing,
b) poverty eradication,
c) youth and human capital development,
d) balanced development statewide,
e) development of basic infrastructure and facilities

This is the general idea of what we will be hearing this afternoon, a full detailed report to be expected in the local dailies tomorrow.

Note that the government has been telling us all along that we have strong economic foundation and that we have a strong state reserve. While strong economic foundation is quite straight forward factual, "strong reserve" statement is debatable and requires elaboration on the part of the government.

Last year the Chief Minister tabled a RM3.07 billion budget and if the revenue rose as claimed then we can look at probably RM3.4 billion budget this year.

Coming back to strong reserve as reported by Bernama yesterday, that would imply that the state have a lot of money. I do not have access to the state government's account but there was a mentioned in Daily Express not too long ago that it is still using Cash Accounting in its financial reporting. Read about the difference of Cash Accounting and Accrual Accounting here.

Such accounting method does not give a true reflection of the financial position of the government of Sabah. The government would just need to defer payments of its long term liabilities for few years and you will immediately see 'surplus' in its annual report. Does 'few years' of withheld payment sound familiar to you - especially those in long term government contracts or concessions?

I bet it does. In fact, too familiar that some are getting fed-up with the waiting game.

It is no surprise that some opposition leaders are claiming that the state government does not have money and we are spending money that we borrowed. Now look at this objectively and for once don't look at it as political.

Check that your house is in order financially, see if you Buku 555 is not too stuffed and come up with that budget appropriately. Don't withhold payment unreasonably!

Kurangkan tambahlah hutang tu!


beaty said...

sa harap ada perubahan sama sabah lah

Zoe said...

last statement tu memang betul ;)

tehr said...

sabah negeri di bawah bayu
negeri kaya ni
aku pulak tak pernah ke sabah

princess said...

you're right, not suprised at all.

it seems we are very very talented when it comes to OVERspending money we dont actually have. ironic.

Armstrong said...

Paling besar la kan budget Sabah ni tahun... :D

Bagus bagus.

Happy Tuesday, Mr Floyd.