KOTA KINABALU: Sabah hopes that the federal government's development allocation the can be kept in a trust fund.
State Finance Minister Datuk Seri Masidi Manjun said the focus should be on efficiency in managing the RM6.5 billion allocated to Sabah under the 2023 Budget.
"As the state finance minister, I think it is more important to uphold efficiency of government agencies at the federal and state in managing the fund.
"Every year, we have been given billions of ringgit for development. But sometimes, the allocation cannot be fully used due to bureaucracy. There is a delay in reimbursing and implementation of projects.
"For example if the allocation for this year is RM5 billion, but only RM3 billion is used due to bureaucracy. Next year, the allocation is being used to complete last year's project, so there will be no new projects.
"But if we put that money into a development trust fund, whether the year has ended or not, it still can be used for projects," he said after presenting more than 500 scrolls to National Dual Skills System SLDN graduates at the Sabah International Convention Centre here.
On the announcement of a poverty eradication programme using oil and gas revenue, Masidi said the state had spent RM126 million to build low-cost houses under the Sabah Maju Jaya housing initiative.
"In the (state) budget, the consolidated revenues come from all sources, including oil and gas. Some of our revenue is meant for development, administration and some revenue is meant for poverty eradication.
"It is not a question of whether there are (poverty eradication) programmes, but more about the effectiveness of implemention. It is undeniable that Sabah is one of the states with the most hardcore poor people," he added.
In 2021, there were 41,490 hardcore poor people recorded in Sabah.
Masidi also lauded the tax on vape products because it would lead to regulations on its sale and use.