KUCHING: Sarawak's revenue for 2026 is projected to increase to RM13.571 billion, RM552 million or four per cent higher than the original estimate of RM13.049 billion, following an increase in the Special Grant from the Federal Government to RM1.5 billion.

Sarawak Premier Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg said that as of September 2026, the state's revenue collection stood at RM10.732 billion, equivalent to 82 per cent of the year's projected target.

“Based on current trends, we now project total revenue for 2026 to reach RM13.571 billion, an upward revision of RM552 million or four per cent above the original estimate of RM13.049 billion,” he said.

He said this when tabling the Supply (2027) Bill, 2026 for its second reading at the Second Meeting of the Fifth Session of the 19th Sarawak Legislative Assembly (DUN) on Monday.

According to him, the upward revision was driven primarily by the increase in the Special Grant from the Federal Government from RM600 million to RM1.5 billion, effective this year.

Datuk Patinggi Abang Zohari who is also the Minister for Finance and New Economy revealed that the state's three major revenue contributors as of September were State Sales Tax amounting to RM3.941 billion, mainly from petroleum products and crude palm oil, followed by cash compensation in lieu of oil and gas rights at RM2.334 billion and dividend income of RM2.147 billion.

Meanwhile, the 2026 Ordinary Expenditure has been revised upwards from RM12.905 billion to RM14.348 billion, an increase of RM1.443 billion or 11.2 per cent.

As of September, a total of RM9.434 billion, equivalent to 66 per cent of the Ordinary Expenditure, had been utilised.

Of this amount, RM3.959 billion was directed towards operating expenditure, while RM5.475 billion was appropriated to the Statutory Funds.

For Development Expenditure, RM5.604 billion, or 58 per cent of the allocated RM9.663 billion, had been spent during the same period.

According to Datuk Patinggi Abang Zohari, development expenditure is expected to increase further towards the end of the year as project implementation continues to gain momentum.

“With development projects gaining momentum and implementation intensifying, expenditure is expected to increase further towards the end of the year,” he said. -UKASnews