[UPDATED] Penang govt marks 11th year in deficit with state budget 2022

GEORGE TOWN – The Penang government today tabled the state budget 2022 with a total allocation of RM935.22 million and an estimated deficit of RM449.8 million, making this its 11th year in deficit since 2011.

Chief Minister Chow Kon Yeow said the estimated deficit will be funded from the state’s RM887.78 million in accumulated savings recorded by the end of last year.

Acknowledging that the estimated deficit is high, he said the Penang government is optimistic that its revenue collection will be able to increase again with the economic recovery measures being taken by the state and federal governments.

“The state government has prepared a strategy to increase revenue in line with economic recovery.”

Meanwhile, the state government has announced the provision of special financial assistance at the end of the year with half a month’s salary or a minimum of RM1,000 for civil servants next month.

The bonus for a total of 3,962 civil servants involves an allocation of RM5.59 million.

This was announced during the tabling of the state budget.

“It is hoped that this special financial assistance will increase the morale of civil servants to provide even more excellent services in the coming years,” said Chow.

He added that the state government has approved a payment of RM300 to supervisors and teachers of fardu ain religious classes, primary and secondary private religious school teachers, and independent Chinese school staffers.

A total of RM200 will be given to tahfiz teachers, pondok school teachers, and Tadika Islam teachers.

“All the payments will be paid in December, involving additional expenses amounting to RM940,600.”

The state will also be allocating RM60 million to the Gurney Wharf project, where Phase 1 is expected to be completed by the end of next year, and Phase 2 a year later. The total estimated cost for the project is at RM200 million.

Next year, Penang will be allocating a 22-acre (8.9ha) plot of land in Seberang Prai Utara valued at RM17.654 million with a basic infrastructure value of RM9.2 million. Some 35 religious associations (Taoism, Buddhism, Hinduism, Christianity, and others) have been given consideration for land offers at the site.

“It is expected that several houses of worship will be opened in two years,” said Chow.

The state government has set up Penang Harmony Corporation on March 10, which will be allocated RM1.1 million next year for its activities and programmes.

Themed “Accelerating Penang2030”, the state budget for next year saw a 2.79% increase compared to the previous plan. This is due to an increase in annual emoluments, the provision of grants to state-linked subsidiaries, and the implementation of the Covid-19 post-pandemic recovery plan, among others.

Chow said the state revenue collection will see a decrease of RM20.6 million (4.07%) next year, and an estimated total collection of RM485.42 million.

“The decline in revenue was contributed by the reduction in interest rates for fixed deposits and state investments.”

He said for the 2022 development budget, the state government has allocated RM316.13 million, an increase of RM22.03 million (7.49%) compared with last year.

The development funds will be channelled to:

– Chief Minister’s Office and state secretary (RM154.32 million);

– Finance (RM87.47 million);

– Public Works (RM26.51 million);

– Islamic Affairs (RM19.95 million);

– Drainage and Irrigation (RM14.72 million);

– Agricultural (RM6.25 million);

– Veterinary Services (RM3.49 million);

– Forestry (RM2.2 million); and

– Botanic Gardens (RM1.22 million). – The Vibes, November 26, 2021