THE Penang government has recorded an actual surplus of RM28.66 million as of May 29 this year.
This is because the state’s actual revenue of RM342.60 million exceeds the state’s actual expenditure of RM313.95 million, says Chief Minister Chow Kon Yeow.
“The state government is confident that it can improve revenue collection in 2024 compared to last year (2023).
“With dedication and commitment from all parties, the Penang government believes that the state’s financial performance will improve this year,” he said in his winding-up speech during the State Legislative Assembly session today.
Further explaining the state’s financial position, Chow said the Penang Legislative Assembly approved the state’s 2024 Budget in November 2023, amounting to RM1.047 billion.
“The Penang government expected a budget deficit of RM513.93 million, considering the projected state revenue of RM533.07 million against the projected operating and development expenditure of RM1.047 billion.
Chow elaborated that when the 2024 Budget was prepared, the balance in the Consolidated Revenue Account (Akaun Hasil Disatukan Negeri) was RM688.85 million.
“However, the Penang government incurred high expenditures in 2023 to significantly enhance efforts to assist the people. This was also the year when the state election was held.
“Consequently, by Dec 31, 2023, the balance in the State Consolidated Revenue Account had decreased from RM688.85 million to RM330.03 million,” Chow said.
He added that in such financial situation, the Penang government relatively has the capacity to spend only RM863.10 million, which is the 2024 projected revenue of RM533.07 million plus the remaining balance of RM330.03 million in the Consolidated Revenue Account.
“Therefore, the state government is taking proactive measures to implement strategies to reduce the projected operating and development expenditure from RM1.047 billion to RM863.10 million,” he said.
Chow mentioned that the Penang government was proactively implementing the ‘State Deficit Projection Reduction Strategy for 2024’ (Strategi Pengurangan Unjuran Defisit Negeri Tahun 2024).
“This strategy is an internal control measure taken by the state government to ensure fiscal sustainability.
“Therefore, if the departments, agencies, statutory bodies, and state-owned companies adhere to the disciplined alignment of 2024 expenditures, the state government is optimistic that this strategy will prevent an actual deficit by the end of 2024,” he said.
Story by Christopher Tan