His remarks follow confirmation that the state received a RM100 million cash advance from Putrajaya to offset a projected deficit this year.

“With these achievements and our continued commitment, I am confident our Penang 2030 agenda will be fulfilled,” he said during his winding-up speech on the motion of thanks to the governor at the state assembly today.

“I hope to hand over the state in strong financial standing, what I call surrendering the state in a battle-ready condition.”

Chow, who assumed his chief ministership in 2018, will leave at the end of this term.

He said the RM1 billion goal would give the next administration fiscal room to fund development and public welfare before quipping “not for salary hikes”.

According to Chow, the RM100 million advance was approved and disbursed last year and will be repaid through reduced federal grants between 2027 and 2029.

He also confirmed that Putrajaya had rejected Penang’s long-standing demand for 20% of federal tax revenue collected in the state to be returned.

“We accept that they’ve rejected it, but we will continue to demand it,” he said.

As of May 20, Penang recorded RM374.4 million in revenue and RM296.2 million in expenditure, resulting in a surplus of RM78.2 million. Its consolidated fund account currently stands at RM235.5 million.

According to a handout, 67% of the state’s revenue came from non-tax sources like land premiums and investment returns, while taxes contribute 26%.

Despite this year’s surplus, Chow said, Penang ran deficits from 2020 to 2024, with the worst in 2023 when spending reached RM951.7 million against RM592.9 million in revenue.

He attributed the shortfall to increased welfare programmes and grants to agencies.

Chow also noted that Penang recorded the highest reserves in 2019 at RM1.15 billion, which was largely driven by proceeds from the Bayan Mutiara land deal.

Of that, he said, RM621.5 million was actual state revenue after accounting for the Penang Development Corporation’s share.