Announcing the budget, Penang chief minister Chow Kon Yeow said the deficit will be offset with money from the consolidated fund, which stood at RM887.7 million as of 2020.

He said the state expects to collect revenue of approximately RM485.4 million next year while RM884.5 million had been set aside for operating expenditure in 20 state departments.

The allocation for operating expenditure has been increased but was “under control” with prudent spending, he said.

Allocations set aside for operating expenditure include grants and fixed charges at RM548.8 million, emoluments and salaries (RM184 million), services and supplies (RM192.9 million), assets (RM7 million), and other expenditures (RM2.4 million).

“As for development allocations, RM316.1 million has been set aside, considering critical and high impact projects, including those for the benefit of small contractors who will help revive the state’s economic sector,” he said.

The breakdown of development allocations are as follows: chief minister and state secretary’s office (RM154.3 million), state finance department (RM87.4 million), public works department (RM26.5 million), Islamic affairs department (RM19.9 million), drainage and irrigation department (RM14.7 million), agricultural department (RM6.2 million), veterinary services department (RM3.4 million), forestry department (RM2.2 million) and the botanic gardens department (RM1.2 million).

Chow said that among the largest allocations in 2022 will go to the Gurney Wharf project, at RM60 million.

Some RM71.1 million had been set aside for the development of Islam in the state, including allocations to manage state departments related to the religion and grants for mosques, surau, Islamic educational institutions, and other programmes.

A sum of RM34.7 million had also been allocated to the drainage and irrigation department for flood mitigation projects, river repairs and other related projects.

He also revealed that the World Bank had granted an allocation of US$10 million (RM42.4 million) for urban greening, stormwater management, baseline data gathering for temperatures by mukim on the island, climate change awareness among youth and capacity building for a “Penang Climate Board”.

It will be carried out in the next five years by the Penang Island City Council, state drainage and irrigation department, and Think City.

Another RM11 million has been granted to the Penang Hill Corporation next year, given the slump in tourism in the state. In addition, RM13.4 million has been set aside for sporting and open spaces development.

Chow also announced a half-month bonus for civil servants in the state, with a minimum of RM1,000 to 3,962 workers next month, at the cost of RM5.5 million.

The state assembly will debate the budget next week.