GEORGE TOWN – The Penang government presented its budget for 2024 with a deficit of RM514.53 million, compared to the deficit of RM467.12 million in 2023.
Chief Minister Chow Kon Yeow, when presenting the budget in the state legislative assembly today, said the budget deficit was necessary in view of the state government’s promise to boost Penang’s development while ensuring people’s welfare is prioritised.
“As much as RM1.047 billion is allocated for operating expenditure and RM374.718 million for development expenditure from the total budget allocation of RM1.422 billion.
“For next year, the state government expects to collect RM533.08 million in revenue and a budget deficit of RM514.53 million. The value of this deficit has increased by RM47.41 million compared to the deficit in 2023 which amounted to RM467.12 million, hence, the budget with a deficit needs to be implemented,” he said.
The estimated deficit or shortfall of RM514.53 million expected in Budget 2024 will be financed from the state government’s reserves, including the remaining Consolidated Trust Account of RM1.67 billion as of Nov 15, 2023, Chow explained.
He added that the estimated revenue collection of RM533.08 million in 2024 shows an increase of RM10.73 million or 2.05% compared to the estimated revenue for 2023 of RM522.35 million, due to the increase in projected tax revenue, especially direct tax and non-tax revenue.
The composition of revenue in 2024 comprises a tax revenue of RM167.91 million (31.50%), non-tax revenue of RM277.92 million (52.13%) and non-revenue receipts of RM87.24 million (16.37%).
Chow said the estimated operating expenditure of RM1.05 billion includes expenditures for emoluments, services and supplies, assets, grants, fixed payments and other expenses.
He also said that the 2024 development expenditure of RM374.72 million will include allocations for the Gurney Bay project (RM80 million), sports and open space development totalling (RM15.3 million), the Penang Transport Master Plan (RM21.23 million), affordable housing development plan (RM6 million), special economic projects (RM15.05 million) and other development projects.
The state legislative assembly resumes on Monday. – November 24, 2023