Budget allocates RM29.2b for Sabah and Sarawak

comments     Bernama     Published     Updated

The 2016 Budget proposes to allocate a total of RM29.2 billion for development in Sabah and Sarawak.

Prime Minister and Finance Minister Najib Abdul Razak, in tabling the budget in the Dewan Rakyat, said the domestic air transportation for economy class passengers on the Rural Air Services in the two states would be exempted from GST.

This is because air transportation is one of the main modes of transportation for people in the interior areas of the two states as well as the Federal Territory of Labuan, he said.

Najib also announced a new programme, saying that RM70 million would be provided through Bank Simpanan Nasional in collaboration with the Sabah and Sarawak governments for interest-free loans for the purpose of building longhouses with a maximum loan of up to RM50,000 for every unit in the longhouse.

"A RM70-million subsidy for hill padi fertiliser will be provided to increase food supply and income of hill paddy farmers in Sabah and Sarawak.

The programme will cover 65,000 hectares of crop areas in Sarawak and 11,000 hectares in Sabah," he said in his Budget 2016 speech which carried the theme 'Prospering the Rakyat'.

INFOGRAPHIC: BUDGET 2016 AT A GLANCE



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