Uggah’s explanation for revenue shortfall illogical, says DAP’s Chong

 

Sarawak DAP chairman Chong Chieng Jen questioned if the estimated revenue in the state’s 2021 budget was unrealistic.

PETALING JAYA: Sarawak DAP chairman Chong Chieng Jen has called on the state’s deputy chief minister Douglas Uggah Embas to provide a better explanation on the RM2.4 billion shortfall in Sarawak’s revenue from its estimated figure for 2021.

Earlier, Uggah had attributed the revenue shortfall to a drop in the collection of oil royalties and sales tax on petroleum products.

However, Chong said for such a huge shortfall, it would mean that international crude oil prices fell during that period but this was not the case.

“In fact, the prices had gone up tremendously in comparison to 2020,” he said.

Chong said that the average price of oil per barrel was US$47.62 at the start of 2021 before rising to US$75.21 by the end of the year.

Thus, Chong said Uggah’s explanation was “illogical and unacceptable” based on the upward trend of international crude oil prices in 2021.

“Unless the estimate was unrealistic,” said Chong.

The 2021 budget for the Sarawak government was estimated to be RM10 billion. However, the state’s budget for next year has revealed that the state’s revenue was only RM7.6 billion in 2021. - FMT