Kuching: Sarawak’s projected RM15 billion Budget for 2027 has raised concerns over revenue projections and spending priorities, with ADUN for Padungan and DAP Sarawak chairman Chong Chieng Jen warning that consecutive budget deficits highlight the need for greater fiscal discipline.
Chong said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg’s description of the 2027 Budget as a “Budget of Optimism” must be matched by realistic revenue estimates and responsible expenditure to avoid further budgeting blunders.
Citing the Auditor-General’s Report 2/2026 on Sarawak, page 36, Chong pointed out that the 2025 Budget had projected a RM500 million surplus, with revenue of RM14.2 billion and expenditure of RM13.7 billion.
“However, actual revenue reached only RM12.5 billion while expenditure rose to RM15.1 billion, resulting in a RM2.6 billion deficit.
“For 2026, the initial revenue estimate of RM13 billion was revised to RM13.5 billion following an unexpected RM900 million increase in federal grants,” he said during a debate on Sarawak Budget 2027 at the Sarawak Legislative Assembly sitting today.
Chong said revenue would otherwise have fallen RM400 million short of the original target.
“Meanwhile, revised expenditure increased from RM12.9 billion to RM14.3 billion, leaving an estimated RM800 million deficit despite the additional federal funding,” he said.
He also questioned why revenue remained below expectations despite international crude oil prices averaging around US$90 per barrel amid the Iran war, which he said should have boosted petroleum-related sales tax and oil and gas royalties.
Chong urged the government to reconsider costly mega projects and proposed four measures to control spending: upgrading the existing Kuching International Airport instead of building a proposed RM10 billion replacement; halting further KUTS Autonomous Rapid Transit development and repurposing existing infrastructure to ease congestion; expanding Bintulu Port Authority facilities instead of constructing a new deep-sea LNG export port; and ending the use of private jets for overseas trips.
He questioned the reliability of the RM15 billion 2027 Budget projection, calling for prudent spending and better alignment between government commitments and actual revenue capacity.
