GEORGE TOWN: Penang has projected a RM514.53mil deficit in its 2024 Budget, marking its 13th consecutive deficit budget since 2011.
With RM1.047bil required for management of the state, the higher deficit in 2024 would be an increase of RM58.13mil compared to 2023, said Chief Minister Chow Kon Yeow.
He said under the allocation for management in 2024, a total of RM622.59mil would be for provisions and fixed payments, RM214.37mil for services and supplies, RM205.9mil would be for emoluments, RM3.38mil for asset acquisition and RM1.36mil for other expenses.
"Provision and fixed payments remain the largest component accounting for 59.43% of total management expenses.
"This amount includes contributions of a total of RM240mil to the State Development Fund, a total of RM110.45mil for state welfare programs including iSejahtera and RM98.50mil for the provision of grants to subsidiaries, state statutory bodies and other agencies.
"Increase in allocation for general objects in principle is to meet the need for annual salary increases, supply cost increases and the need to replace capital assets that are no longer economical," he said during his Budget 2024 speech at the state legislative assembly sitting here on Friday (Nov 24).
Chow added that the increase in deficit by RM47.41mil compared to this year's RM467.12mil was due to the state's continued commitment in intensifying programs that were people-oriented and balanced the needs of state development projects.
"The 2024 budget is prepared based on the outcome principle by emphasising the success of every state plan for the well-being of the people.
"Although we are aware of the limitations of the state's fiscal capacity which shows a widening deficit gap, the state government remains committed to designing and implementing projects and programs to drive the state's socio-economic growth and further ensure the Penang2030 Vision is on the right track," he added.
Meanwhile, Chow said the state expects to collect RM533.077mil in revenue next year, an increase of RM10.73mil or 2.05% compared to the estimate for the current year (2023) of RM522.35mil.
"The composition of revenue in 2024 consists of tax revenue of RM167.91mil (31.50%), non-tax revenue of RM277.92mil (52.13%)and non-tax receipts revenue of RM87.24mil (16.37%).
"The main increase in revenue of RM10.73mil expected in 2024 is due to the increase projected tax revenue, especially direct tax and also non-tax revenue.
"Up to Nov 15 this year, the state has collected a total of RM496.17mil," he said.
