The Terengganu government has allocated RM1.887 billion for its 2011 Budget, an increase of RM6.04 million or 0.32 per cent from the RM1.881 billion in the actual 2010 Budget.

Of the total, RM1.699 billion is derived from the federal government's fund, including petroleum royalties which represents 90 per cent of the budget, while the remaining RM188 million or 10 per cent comes from the state government.

Menteri Besar Ahmad Said, however, said the 2011 Budget had actually dropped by RM57.18 million or 2.94 per cent compared with the revised 2010 Budget.

When tabling the budget at the state assembly sitting in Kuala Terengganu today, Ahmad said the state government would strive to generate development and ensure the well-being of the people.

"At the same time, the state government will also ensure wise and prudent spending without affecting its performance, productivity and quality of service," he said.

"The impact of the economic recovery has affected the economic scenario in Terengganu, with the unemployment rate expected to decline to 3.5 per cent in 2010 from 3.9 per cent in 2009."

Ahmad said the state Gross Domestic Product (GDP) was expected to grow positively to six per cent in 2010 compared to -1.5 per cent in 2009.

In fact, he said, for 2011, economic growth was expected to reach 6.5 per cent to seven per cent.

Ahmad said the objective of the Terengganu State Development Plan 2009-2013 was to give special focus on sectors that could help boost economic growth and eradicate poverty.

The sectors are education and human resource development, agriculture and agro-based industry, tourism, and industrial, commercial, services and information technology.

"This budget will focus on four main strategies, namely ensuring the  people's well-being, boosting human capital development, increasing the state's competitiveness and improving public service delivery," he said.

- Bernama