Chief Minister, Datuk Patinggi (Dr) Abang Haji Abdul Rahman Zohari Bin Tun Datuk Abang Haji Openg on 12 October 2021 presented the approved 2022 Sarawak Budget to members of the Dewan Undangan Negeri at a special meeting in Kuching.
The 2022 State Budget has been formulated against the backdrop of both global and domestic economies performance and its forecasted growth in 2022.
The Sarawak economy is projected to grow between 3.0 to 4.0 percent in 2021, supported by external demand and improvement in domestic economic activities.
For 2022, the growth is projected to improve to between 5.0 to 6.0 percent with the reopening of global economies and domestic businesses under the Phase 3 National Recovery Plan.
2022 State Budget anchor on six (6) interlinked and mutually reinforcing pillars :
1. Health First, focusing on saving lives through immediate health response and needs in combating COVID-19 pandemic;
2. Protecting our people through inclusive and enhanced provision of essential services, assistances, and social protection schemes;
3. Economic recovery and resilience through the creation of jobs and other income generating opportunities as well as supporting micro, small and medium scale businesses;
4. Social cohesion and community development that addresses socio-economic inequities, rural-urban and regional imbalance;
5. Digital economy transformation that focuses on providing universal, accessible, and affordable internet connectivity and digital-oriented services; and
6. Sectoral growth and optimization of resources in tourism, agriculture, forestry, mining, manufacturing, services, education, and science and technology.
2022 State Budget is framed across eight (8) Strategic Thrusts aimed at accelerating economic growth, stimulating private investments, generating jobs through public investments, and building a more competitive and income-generating economy.
The eight (8) Strategic Thrusts :
1. Protecting Lives and Livelihoods
2. Steering Economic Recovery
3. Facilitating and Sustaining Business Recovery
4. Transforming Agriculture and Rural Economies
5. Developing Human Capital
6. Accelerating Digital Adoption & Data Utilisation
7. Balancing Economic Growth with Environmental Sustainability
8. Enhancing Government Capacity and Service Delivery
Revenue Estimates, 2022
The State revenue for the year 2022 is projected at RM10.036 billion :
(1) Tax Revenue totalling RM4.907 billion or 49 percent, comprises the following:
(a) RM3.876 billion from State Sales Tax of which:
• RM3.162 billion from crude oil, liquefied natural gas and other petroleum products;
• RM600 million from crude palm oil and crude palm kernel oil;
• RM60 million from lottery;
• RM49 million from aluminium products; and
• RM5 million from tyre.
(b) RM600 million from raw water royalty;
(c) RM320 million from forestry; and
(d) RM111 million from mining royalties, land rents and others.
(2) Non-Tax Revenue estimated at RM4.844 billion or 48 percent , mainly derived from the following major sources:
(a) RM2.108 billion from 5 percent cash compensation in lieu of oil and gas rights or royalty on oil and gas;
(b) RM1.466 billion from dividend receipts;
(c) RM721 million from interest income;
(d) RM320 million from land premium;
(e) RM120 million from cash compensation in lieu of import and excise duties on petroleum products; and
(f) RM109 million from others, including licences, service fees, permits and rentals.
(3) Non-Revenue Receipt of RM26 million, mainly from forest liquidated damages, disposal of assets, and forest compounds;
(4) Federal Grants and Reimbursements of RM259 million.
Ordinary Expenditure Estimates, 2022
RM10.646 billion will be allocated for 2022 :
• RM4.046 billion is for operating expenditure
• RM6.6 billion to be appropriated to Development Fund Account
Operating Expenditure of RM4.046 billion :
• RM905 million for personnel emoluments;
• RM1.333 billion for supplies and services;
• RM1.561 billion for grants and fixed payments; which includes operating grants to Statutory Bodies and local authorities, servicing of public debts and payments of gratuities, pensions, scholarships, welfare and financial assistances;
• RM89 million for the procurement of assets; and
• RM158 million for other operating expenses.
Development Expenditure Estimates, 2022
RM7.509 billion will be provided for Development Expenditure Estimates under 2022 Budget
• RM5.371 billion will be allocated under Economic Sector
* RM3.796 billion for commerce and industry such as State investment, State industrialisation programmes, and tourism promotion;
* RM1.18 billion for transport which includes roads, bridges, riverine infrastructure and ports, navigational safety and various infrastructure projects under Projek Rakyat;
* RM134 million for agriculture development such as crop and industry development, agriculture infrastructure, veterinary services and agriculture research;
* RM91 million for provision of energy and public utilities especially in the rural areas;
* RM50 million for environment such as forest conservation, reforestation and restoration, urban drainage, and flood mitigation projects;
* RM53 million for feasibility studies on State development planning and policy formulation; and
* RM67 million for research and development.
• RM1.905 billion will be allocated under Social sector
* RM1.155 billion for village and community development mainly for Rural Transformation Projects, Minor Rural Projects, Kampung Extension Schemes, Urban Renewal Projects and Rural Growth Centres;
* RM220 million for housing development mainly for construction of affordable houses;
* RM344 million for local authorities and social welfare services which also includes urban sewerage and waste management as well as landfill development;
* RM162 million for education and human capital development through upskilling and reskilling programmes; and
* RM24 million for culture, youth and sport including upgrading of various sports facilities throughout the State.
• RM233 million will be allocated under general administration sector such as construction of government offices and quarters as well as ICT and digital projects
