The tabling of Budget 2016 by Prime Minister Datuk Seri Najib Razak on Friday placed the development and wellbeing of people in Sabah and Sarawak as government's priority to improve the economic and social development of the two states.

Allocations of more than RM29.2 billion for both states would help the government to implement various planned development agenda.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the announcement on the toll-free Pan-Borneo Highway could ensure the people in Sabah and Sarawak to have the opportunity to earn higher income.

"Admittedly, the people in Sabah and Sarawak are a little behind compared to people in the peninsular, that is why we (the government) build the highway, so that the people could be connected and their economies improved," he said.

For Works Minister Datuk Seri Fadillah Yusof, he believed that the highway project could strengthen the country's economy.

Fadillah said the project was in accordance with the government's efforts to bridge the infrastructure gap between the peninsular, Sabah and Sarawak.

"We really want to close the gap, mainly involving urban and rural areas in Sabah and Sarawak. Furthermore, the toll free highway will not burden the people," he said.

Minister in the Prime Minister's Department Nancy Shukri said the completion of the 1,090-kilometre highway project coupled with the toll-free initiative was much awaited by the people in Sarawak, who have no alternative roads at the moment.

Meanwhile, Human Resource Minister Datuk Seri Richard Riot said he was happy with the announcement of the construction of the industrial training institute (ILP) in his parliamentary constituency in Serian.

"The ILP will benefit local residents to obtain education in the technical field," he said.

Women, Family and Community Development Minister Datuk Seri Rohani Abdul Karim said the development achieved through the budget would attract more foreign investors to the states.

She said the construction of the new airport in Mukah was also important to draw more investors and tourists to Sarawak and to generate the local economy. Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said the Budget 2016 was perfectly framed even though the country was facing global economic uncertainty.

"I, on behalf of the Sabah of people, thank the prime minister for the various allocations announced for the state, including the RM1 billion to build the eagerly awaited affordable houses, this is among the best budget for the people of Sabah," he said.