Chief Minister Lim Guan Eng said there was nothing sinister in the more than quadruple increase in allocation for the offices, especially as the government was being transparent in its dealings.
He said if the RM609 million loan to state investment agency Penang Development Corporation (PDC) were subtracted from the allocation for the two offices, the sum would be nearly similar to this year’s.
The budget for the two offices next year is RM707.6 million, compared with RM161.5 million this year.
“Through the funds to the offices, we aim to acquire more land in Seberang Prai as it is our next centre of growth.
“Through a loan extended to PDC, we could build our land bank there,” Lim said in a press conference outside the chambers of the state Legislative Assembly here today.
He said the repayment of the PDC loan would be funnelled to the RM220 million flood mitigation plan.
“PDC will give us RM150 million in loan repayments for the state flood mitigation projects, while the Penang Water Supply Corporation (PBA) will give RM50 million. The remaining RM20 million will come from both the Penang and Seberang Prai municipalities,” he said.
The RM707,611,840 allocation will be utilised as follows:
i. Acquisition of land for the construction of water retention ponds in Alma, Bukit Mertajam and the construction of two roads in Central Seberang Prai District. — RM27,000,000
ii. Low-cost Housing upgrade and refurbishing plans — RM12,490,000
iii. Loans to local authorities (municipalities) — RM10 (token sum)
iv. Research and studies for Penang’s economic development — RM463,020
v. Loans to PDC — RM609,000,000
vi. Upgrade of the State Museum and Art Gallery — RM650,000
vii. Covered walkway to the State Mosque at Green Lane — RM500,000
viii. Loans to PBA and surveying work at water catchment areas in Penang — RM30,350,000 (of amount, RM30 million in form of loans to PBA)
ix. Penang Hill development projects — RM6,216,180
x. Upgrading of office spaces in Komtar — RM1,400,000
xi. Funds for tourism development exhibitions — RM200,000
xii. Upgrading of state civil service quarters — RM3,410,000
xiii. Upgrading of sports facilities — RM67,600
xiv Upgrading of State Pavilion at Medan Fair — RM150,010
xv. State Library Corporation projects — RM500,000
xvi. Special Economic Projects (construction and upgrading of homes for the poor, upgrading of food stalls, development of human capital of the poor and upgrading of multipurpose halls) — RM6,300,000
xvii. Syariah Court project — RM10 (token sum)
xviii. Digital Government Development— RM6,695,000
xix. Heritage Development Project — RM2,220,000