Shafie slams opposition’s alternative budget as wishful thinking

Chief Minister Shafie Apdal says the opposition’s alternative budget will bring Sabah to the ‘brink of destruction’. (Bernama pic)

KOTA KINABALU: Chief Minister Shafie Apdal has hit back at Jeffrey Kitingan who had proposed the opposition’s alternative budget, describing the latter’s proposal as “wishful thinking”.

In his budget winding-up speech today, Shafie, who is also the state’s finance minister, said Kitingan’s alternative budget of RM16.6 billion was impractical and unreasonable to implement.

“This can bring us to the point of destruction.

“I say so because there is no certainty that we can collect the revenues as stated by him. To me, the proposal by the Tambunan assemblyman is at best wishful thinking for now.”

He also responded to Jeffrey’s claim that the targeted revenue set by the state government was too low as it did not take into account the 40% share of state revenue from the federal government, import and excise duties on petroleum production and export duty on minerals, among others.

“For the information of this House, all these revenues are still being negotiated with the federal government.

“In ensuring a high discipline in financial management, I have stressed the need to spend based on our ability to collect.

“Making an unrealistic prediction or setting a high target is not a pragmatic approach and very risky,” Shafie said.

Kitingan had claimed the state’s budget tabled by Shafie last Monday was a failure.

The Gabungan Bersatu Sabah deputy chairman told the state assembly that the budget did not reflect the coalition government’s election promises and had also failed to fulfil Sabah’s rights in terms of funding and revenue.

He proposed Gabungan Bersatu Sabah’s alternative budget of RM10.86 billion, against an estimated revenue of RM16.605 billion, showing a surplus of RM5.745 billion.

Conserving Sabah’s forests

Meanwhile, Shafie said the government is not abandoning the Totally Protected Areas (TPA) policy, adding the state would ensure at least 30% of Sabah’s forests would be set aside for conservation by 2025.

He said the government’s decision to adopt a land-use plan that would address the dual needs of development and conservation did not mean the government would be clearing protected areas for infrastructure development, forest exploitation or agriculture.

The Senallang assemblyman said it was more to balance out land usage in terms of development and it would not jeopardise the environment, adding the efforts would be conservation-driven.

On the 20% oil royalty request from Petronas, Shafie said the government had held talks with the national oil company and was still waiting for an answer.

“The discussions centred around the increase, from 5% royalty to 20%, and its calculation to be based on gross profit and not nett profit.

“However, like Sarawak, the state government is still waiting for a decision from the federal government and Petronas,” he said.

On electricity, Shafie said the state government is considering taking over utility company Sabah Electricity Sdn Bhd to improve services and provide lower power tariffs.

He said the state was also thinking of taking over the water concessions, adding the infrastructure development ministry was looking into this.

The assembly later passed the RM4.16 billion state budget for 2019. - FMT