All good: Chow (centre) and Deputy Chief Minister I Mohamad Abdul Hamid (in grey) with other assemblymen at the Penang State Assembly Building in George Town. — LIM BENG TATT/The Star
GEORGE TOWN: Penang has projected a RM514.53mil deficit in the state’s Budget 2024, marking its 13th consecutive deficit spending plan since 2011.
With RM1.047bil required for management of the state government, the higher deficit next year will be an increase of RM58.13mil compared with this year, said Chief Minister Chow Kon Yeow.
Under the allocation for management in 2024, a total of RM622.59mil will be for provisions and fixed payments, RM214.37mil for services and supplies, RM205.9mil for emoluments, RM3.38mil for asset acquisition and RM1.36mil for other expenses, he said.
“Provisions 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 programmes including iSejahtera and RM98.50mil for the provision of grants to subsidiaries, state statutory bodies and other agencies.
“Increase in allocation for general objects 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 yesterday.
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 to intensifying programmes that were people-oriented and balancing the needs of state development projects.
“Budget 2024 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 programmes to drive the state’s socio-economic growth and further ensuring the Penang2030 Vision is on the right track,” he said.
The shortfall of RM514.53mil in Budget 2024 would be financed from the state government’s reserves, including the balance of the Consolidated Trust Account at RM1.67bil as of Nov 15, he said.
Meanwhile, Chow said the state was expected to collect RM533.077mil in revenue next year, an increase of RM10.73mil or 2.05% compared to the estimate for the current year 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 in 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.
