THE Penang government has tabled an estimated operating expenditure of RM1.0476 billion for the year 2024.
Chief Minister Chow Kon Yeow, in tabling the Penang Budget 2024, said the Legislative Supply Bill 2024 aimed at empowering the state government to allocate a budget of RM1,011,170,179 for 20 departments next year (2024).
“Additionally, RM36,434,356 is allocated for charged expenditure for three departments and is charged to the state Consolidated Fund.
“Therefore, the total projected operating expenditure for 2024 is RM1,047,604,535.
“The proposed operating expenditure for 2024, reflects an increase of RM58.13 million compared to 2023.
“This rise is attributed to the state government’s continuous commitment to intensifying people-oriented programmes and balancing the needs of state development projects.
“Under the 2024 operating allocation, RM205.90 million is allocated for emoluments, RM214.37 million for services and supplies, RM3.38 million for asset acquisition, RM622.59 million for grants and fixed payments, and RM1.36 million for other expenditures.
“The grants and fixed payments category remains the largest component, covering 59.43% of the total operating expenditure. This includes contributions such as RM240 million to the State Development Fund, RM110.45 million for state welfare programs including iSejahtera, and RM98.50 million for grants to subsidiaries, state statutory bodies, and other agencies,” Chow tabled the state’s Budget 2024 during the State Legislative Assembly session today.
He explained that the increase in operation spending is controlled, in line with measures taken to exercise discipline in spending prudently.
“The actual operation spending until Nov 15 this year is RM709.20 million, and is expected to significantly decrease compared to the 2023 estimated spending of RM989.47 million,” Chow highlighted.
Regarding the Penang Budget 2024, Chow stated that the state government anticipates collecting revenue amounting to RM533,077,255 in 2024.
“This reflects a growth of RM10.73 million or 2.05% when contrasted with the estimated revenue of RM522.35 million in 2023.
“The 2024 revenue composition includes tax revenue of RM167.91 million (31.5%), non-tax revenue of RM277.92 million (52.13%), and non-revenue receipts of RM87.24 million (16.37%).
“The anticipated increase in revenue is attributed to higher tax estimates, especially direct taxes and non-tax revenue.
“Considering the projected revenue of RM533.08 million against the operating expenditure of RM1.0476 billion, the 2024 Budget is expected to have a deficit of RM514.53 million, an increase of RM47.41 million from the 2023 deficit,” Chow said.
He explained that a deficit Budget is necessary, in line with Penang’s commitment to promoting state development and ensuring the well-being of the people.
“The projected deficit of RM514.53 million in the 2024 Budget will be funded from the state government’s reserves, including the Consolidated Trust Account, which had a balance of RM1.67 billion as of Nov 15 this year,” he said.
Meanwhile, the proposed Penang development Budget for 2024 was RM374,718,160 for nine state departments, an increase of RM47.96 million or 14.68% compared to 2023.
“The highest development allocation is under Vot P01, totalling RM197.76 million, covering projects such as Gurney Bay (RM80 million), Sports and Open Space Development (RM15.3 million), Penang Transport Master Plan (PTMP) (RM21.23 million), Affordable Housing Development (RM6 million), Special Economic Projects (RM15.05 million), and other development projects.
“Additionally under Vot P01 in 2024, the state government provides a loan allocation of RM15 million to the Penang Development Corporation (PDC) for the corporation to cover part of the cost of the GBS By The Sea Project,” he said.
Chow said the funding for the development expenditure includes RM353.12 million from state sources and an estimated RM21.60 million from the Federal Government.
Lamenting the situation, he emphasised: “Penang is anticipated to receive a mere RM21.60 million from the Federal Government in the development budget.”
Chow expressed his discontent, stating that such an allocation of only RM21.60 million should not be the case for the Penang government.
In comparison to the 2023 budget of RM326.76 million, the 2024 Development Budget reflects a noteworthy increase of RM47.96 million, constituting a growth of 14.68%.
Chow added that the Penang Budget 2024 was crafted based on outcome principles, emphasising the success of each state’s plan for the well-being of the people.
“Despite acknowledging the fiscal limitations leading to a widening deficit, the Penang government remains committed to designing and implementing projects and programmes to drive socio-economic growth and ensure the alignment of the Penang2030 vision.
“The state government is committed to upholding the principles of Competency, Accountability, and Transparency (CAT) in governance, ensuring that Penang maintains its reputation for clean and dynamic leadership,” he said.
Chow emphasised that the Penang government is actively engaged in fortifying the state’s development and accomplishments across seven priority areas slated for focus in the next five years.
“These encompass employment opportunities, the development of ecosystem networks, connectivity enhancements in the transport network, improvements in traffic flow, strategies to tackle climate change issues, enhancements in water supply, and comprehensive community development initiatives catering to youths, women, and the elderly,” he said.
As for the purpose of development under the state Islamic Religious Affairs Department (JHEAIPP), Chow said the state government would allocate a total of RM21.48 million.
“Out of this allocation, RM10.18 million has been approved for the construction, improvement, and renovation of mosques and prayer rooms in Penang.
“The state government is also planning to develop three Sekolah Agama Rakyat (SAR), namely SAR Nurul Falah in Taman Berjaya, SAR Masjid Bandar Baru Ayer Itam in the northeast district, and SAR Madrasah An-Najah in Kampung Selamat, north Seberang Perai. Construction work for the mentioned SARs is scheduled to proceed in 2024, with a total allocation of RM2.4 million dedicated to these schools,” he said.
Chow also stressed the need for assistance and programmes essential for rural development.
“Taking into account current developments, the state has reviewed the Guidelines for the New Construction and Repair Programme for Houses of Poor Families, wherein the maximum value for the construction of new houses has been increased from RM56,000 to the new maximum value of RM75,000, effective from 2023.
“This step is not only to ensure the ongoing relevance and effectiveness of the programme but is also aimed at fulfilling the primary objective of assisting the less fortunate in securing comfortable housing.
“This year, the state government has allocated RM3.1 million to continue the sustainability of this programme, benefiting a total of 42 recipients with a cumulative expenditure of RM2.23 million to date,” he said.
The Penang Budget 2024 also include:
i) Disaster Humanitarian Logistic Centre = RM2.5 million
ii) Central Area Transit (CAT) George Town bus funding = RM1.6 million
iii) Transport sponsorships and subsidies such as CAT Bridge and BEST Komtar = RM15 million
iv) Incentives to taxi drivers and school bus operators = RM1.2 million
v) Department of Agriculture Penang to develop state agriculture = RM6.93 million
vi) Penang Veterinary Services Department to strengthen livestock and food industry = RM4.6 million
Story by Christopher Tan
Pix by Siew Chia En and Muhamad Amir Irsyad Omar