ISKANDAR PUTERI – The Johor government today tabled a deficit budget of RM284.14 million for 2021, after 10 straight years of surplus.
Menteri Besar Datuk Hasni Mohammad said the state’s estimated revenue is RM1.609 billion against a projected expenditure of RM1.857 billion next year.
“The state government is expected to spend RM850 million through the Consolidated Development Fund to implement the 12 key agendas of Budget 2021.
“Yes, this budget is a deficit budget. In the current economic situation, we have to spend more than usual, derived from existing sources, and be more focused,” he said when tabling the state budget, themed “Resilience the Path to Prosperity”, in the state assembly here today.
For operating expenses, which include contributions to the Consolidated Development Fund amounting to RM997.21 million, a total of RM513.69 million will be spent for emoluments and RM483.51 million for other expenses, he said.
He laid out two financial strategies, one of which is optimising all resources available to the state government through local authorities and government-linked companies.
“Local authorities will allocate RM562 million for the implementation of development, welfare and Covid-19 eradication initiatives.
“The state government, through (GLCs), also helps in the success of Johor’s development initiatives.”
The second strategy is based on the concept of counter-cyclical measures.
“The state government will postpone fiscal consolidation efforts until Johor’s economy expands again,” said Hasni.
He said the state is expected to chart a K-shaped recovery next year, owing to the effects of a gloomier economic environment and the decline in Johor Baru-Singapore cross-border activities.
“Johor should acknowledge that its economy will experience a recovery curve in the form of a ‘K’ shape, where certain industries will show recovery, while others will continue to slump.
"For instance, the tourism and aviation sectors continue to be badly affected. In contrast, the agriculture, manufacturing, trade, retail, financial services, and information and communications technology sectors are charting significant recovery.”
He said the state is expected to see an economic growth of between 6.6% and 7.6% next year, depending on five factors, including the state government’s efficiency in containing Covid-19.
“Armed with cooperation and earnestness... I believe Johor can achieve an economic growth of between 6.6% and 7.6% in 2021.” – Bernama, November 26, 2020
