GEORGE TOWN, Oct 12 — The Penang government today tabled the 2021 Budget totalling RM909.82 million with a deficit of RM403.8 million.
Chief Minister Chow Kon Yeow said this was after taking into account the expected revenue of RM506.02 million compared to the operating expenditure of RM909.82 million.
According to Chow, the deficit was much higher than the 2020 deficit projection of RM273.5 million.
“The deficit projection of RM403.8 million will be borne by the state’s Consolidated Fund with a balance of RM1.07 billion as at 2018,” he said when tabling the Supply Bill and the motion on the 2021 Development Estimates at the Penang State Legislative Assembly sitting, here.
Chow said for 2021, the state government estimated the collectable revenue to be RM506 million, a reduction from RM519 million this year, which comprised tax revenue of RM162.97 million, non-tax revenue (RM250.91 million) and non-revenue receipts (RM92.13 million).
He said this was due to limited and no new revenue sources for 2021.
Chow added that the proposed state development budget for 2021 was RM294 million, an increase of RM24.76 million over this year’s allocation of RM269 million.
He also stated that the main focus of the 2021 Budget was to strengthen Penang’s economic recovery with four strategies, namely economic growth, sustainability, improving the people’s quality of life and empowering human capital.
Meanwhile, Chow said the high-impact flood mitigation projects would continue in 2021 with an allocation of RM96.13 million to the state Drainage and Irrigation Department.
The state government also allocated RM31.98 million for the continuation of road and bridge construction projects and upgrading works next year, he added.
— Bernama
