The Penang state government has come up with yet another budgeted deficit, RM255m for 2014, even though the actual results in previous years have shown surpluses.
2012 – RM114m actual surplus – Accumulated reserves RM825m (as at end-2012)
2013 – RM262m budget deficit (but surplus expected)
2014 – RM255m budget deficit
2013 Breakdown of budget deficit
Budgeted revenue RM709m
Budgeted operating expenditure RM971m (771m plus contribution to state development fund RM200m)
Budgeted deficit RM262m
Budgeted evelopment expenditure RM363m
Total budgeted expenditure RM1.1bn (971-200+363)
2014 Breakdown of budgeted deficit
Budgeted revenue RM587m (Tax revenue RM134m, Non-tax revenue RM368m, Other revenue RM86m)
Budgeted operating expenditure RM843 (RM723m plus contribution to state development fund for affordable housing RM120m)
Budgeted deficit RM255m
Budgeted development expenditure RM239m
Total budgeted expenditure RM962m (843-120+239) (2013 – RM1.1bn)
Figures extracted from CM’s budget address.
This raises the question whether the budget figures have been too conservative.