Noting that there had consistently been surpluses from the annual state budgets since DAP and its coalition partners took over the Penang government, Shah Headan Ayoob Hussain Shah (BN-Teluk Bahang) questioned whether there was a political reason behind the apparent thriftiness.
He said being too thrifty with funds that were meant to be used to raise standards of living was not consistent with good governance.
“One can only wonder what the effects are on people who are hoping to feel a positive impact from the budget in their daily lives,” he said yesterday during the debate on the 2017 state supply bill.
“Perhaps restraining expenditures to show prudence and good management is purely an attempt to gain political mileage.
“In my opinion, this is just a populist budget ploy to blind the people. I am afraid if this kind of false restraint continues, the people’s welfare may be affected.”
Last week, the administration tabled a RM1.45 billion budget for 2017, an increase of RM0.44 billion from this year’s budget. The deficit has increased by 128.36 per cent from last year’s RM292.13 million.
The 2015 budget had a deficit of RM230.31 million, but a surplus of RM71.78 million was recorded in the accounts for that year.
Shah Headan said five state agencies did not spend all of the funds allocated to them in 2015. He said RM28.3 million, or 21 per cent, of the overall 2015 budget was not spent by the agencies.
At the top of the list was the Public Works Department, which saved 42 per cent of the funds set aside for it, followed by the Agriculture Department (12 per cent), Welfare Department (8 per cent), Forestry Department (6 per cent) and the Drainage and Irrigation Department (2 per cent).
“The Penang government ought to investigate why these allocations are not spent,” Shah Headan said.
He questioned whether the savings were necessary or whether mistakes were made in prioritising projects for 2015.
“What about the people who are hoping for a positive impact from allocations in the budget?” he asked.
He said the Public Works Department, for example, could have fully used its funds to maintain hill slopes, build new roads and upgrade traffic lights.