The sixth consecutive deficit budget since 2012, Budget 2017 is higher than this year’s RM1.1 billion budget. However, the deficit increased 128.36 per cent, or RM667.1 million, from last year’s RM292.13 million.
Penang Chief Minister Lim Guan Eng said despite the deficit, it would likely be a surplus budget as exemplified in previous years.
“The 2015 deficit budget of RM230.31 million in the end recorded a surplus of RM71.78 million at year-end,” he said at the state Legislative Assembly here today.
He also announced a half-month bonus, or minimum RM700, for the state’s civil servants, with the amount to be added to their December salary.
Revenue collection for 2017 is expected to be at RM687.41 million, a figure almost identical to this year’s RM687.40 million revenue.
The new budget also sees RM887 million allocated for development, a hike of 156 per cent from this year’s RM346.12 million.
The development allocation is 61.1 per cent of the overall budget, compared with the management expenditure of RM564.51 million.
Lim said the increased allocation for development was to service a loan to the Penang Water Supply Corporation (RM30million) and the Penang Development Corporation (RM609 million).
He said the government expected to reap an estimated RM120 million in returns on the loans over eight years, starting 2018.
Penang also announced an allocation of RM500,000 for the Seberang Prai Municipal Council to build a dog pound to reach a zero strays target by 2018.
The sum of RM57.57 million was allocated for road projects and public transport to overcome traffic congestion and improve connectivity.
Penang’s Budget 2017 has also set aside RM220 million for flood mitigation projects in the state, on top of the RM150 million promised by the Federal government recently.
On Nov 14, Natural Resources and Environment Minister Wan Junaidi Tuanku Jaafar announced in the Dewan Rakyat an allocation of RM150 million to Penang for flood mitigation, but it would not given to the Penang government.
Instead, it would be managed by the Penang Federal Action Council, led by Zainal Abidin Osman, who is also Penang Umno liaison committee chairman.