Sabah Sets Up Special Committee To Study Targeted Subsidies Amid Global Oil Price Rise
KOTA KINABALU, April 29 (Bernama) -- The Sabah state government has established a special committee to study the need for targeted subsidies as an effort to assist sectors affected by the rise in global oil prices, said Deputy Chief Minister II Datuk Seri Masidi Manjun.
Masidi, who is also Sabah Finance Minister, said that the state Ministry of Finance would propose targeted subsidies, subject to the findings and recommendations of the special committee.
"The Sabah Ministry of Finance will propose the rationalisation of existing expenditures to ensure that state government spending is carried out prudently during this crisis period, as the key to economic sustainability in times of crisis lies in spending efficiency.
"This effort is also to ensure that Sabah can maintain sustainability and resilience in the long term without compromising the state's fiscal reserves," he said while winding up the debate on the ministry at the Sabah State Assembly session here today.
Masidi also said Sabah still needs to rely on Federal Government loans as the implementation of development projects such as road construction, sewage services, irrigation and drainage, as well as water supply provision involves high investment costs.
He said the total amount of matured Federal loans that need to be repaid is RM3.2 billion.
Although the loan amount is high, the loan repayment amount is much lower, he said.
"The Sabah government only repays about RM220 million per year for matured loans. The Sabah government is a good paymaster, always making repayments according to the established schedule," he said.
He noted that the state government also plans to implement several measures to reduce dependence on Federal Loans.
Among them are strengthening the financial position through increased revenue, optimising existing revenue collection, and encouraging all departments to explore and generate new revenue, he added.
-- BERNAMA