State govt urged to table supplementary budget

KUCHING: The state government needs to urgently table a supplementary budget during the next sitting of the State Legislative Assembly (DUN) to address issues brought about by the drastic drop in oil prices as well as the Covid-19 pandemic.

Parti Sarawak Bersatu (PSB) president Dato Sri Wong Soon Koh who said this, pointed out that the 2020 State Budget passed in November last year worth RM9.891 billion, had taken into account the five per cent State Sales Tax on petroleum products, but had yet to be paid by national oil corporation Petroliam Nasional Berhad (Petronas).

“Sarawak needs to re-examine the annual budget through the tabling of a supplementary budget to put things right,” he told a press conference here yesterday.

Wong, the state's former Second Finance Minister, said the supplementary budget is also to cover the RM1.15 billion ‘Sarawakku Sayang Special Assistance Package' and RM16.4 million for essential food supply announced by the state government recently.

The DUN sitting is scheduled to be held for one day only on April 16 due to the Covid-19 outbreak.

Wong said with the price of oil dropping to below US$20 per barrel – the lowest in 18 years – the cash compensation from oil and gas resources in Sarawak is expected to be drastically lower.

“Usually the oil price is about USD$50 to USD$60 per barrel. Can you imagine the amount of reduction now? This means the cash compensation for the state in lieu of the oil and gas rights is going to be very much reduced,” he said.