Penang state govt tables higher deficit budget for 2023

Focus

21 Nov 2022 04:11pm

Chow Kon Yeow - BERNAMA FILE PIX

GEORGE TOWN - The Penang state government has presented its budget for 2023 with a higher deficit of RM467.12 million against a deficit of RM449.80 million in 2022.

Chief Minister Chow Kon Yeow said the budget deficit was necessary in view of the state government's promise to boost Penang’s development while ensuring people’s welfare is prioritised.

"Taking into account 2023’s expected revenue of RM522.35 million against an operating expenditure of RM989.47 million, this will result in a deficit of RM467.12 million in the state’s budget for 2023,” Chow said when presenting Penang Budget 2023 in the state legislative assembly here today.

"The estimated deficit or shortfall of RM467.12 million expected in Penang Budget 2023 will be financed from the state’s accumulated savings at the end of 2021 amounting to RM848.82 million," he said.

Chow said the state’s total reserves as of end-2021 amounted to RM2.12 billion, including its consolidated trust account.

He added that the proposed 2023 operating expenditure, totalling RM989.47 million, was an increase of RM54.25 million compared to 2022.

He estimated that the state government will be able to collect revenues totalling RM522.35 million, a 7.61 per cent increase of RM36.93 million versus the 2022 estimated revenue of RM485.42 million.

Revenue composition for 2023 comprises a tax revenue of RM165.65 million or 31.71 per cent; non-tax revenue of RM253.93 million, or 48.61 per cent, and non-revenue receipts of RM102.77 million, or 19.68 per cent.

''The main reason for the expected RM36.93 million rise compared to 2022 was from non-tax revenue sources involving licenses and permits and financing profits and investment gains,'' he said.

In the budget presentation themed "Sustainable Development for the Wellbeing of the People”, Chow also announced the giving of premium discounts for the extension of the leasehold period and also ownership due to the ending of the leasehold period.

He said premium discounts, which ranged from 50 to 90 per cent, were based only on the current land value, without taking into account the structures on the land. - BERNAMA