Another deficit forecasted for Penang even though previous actual results show surpluses


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.

Please help to support this blog if you can.

Read the commenting guidlelines for this blog.
Notify of

Most Voted
Newest Oldest
Inline Feedbacks
View all comments

Should it not have read another Deficiency forecast instead of “forecasted” ?

Don Anamalai

People should concern about their personal finance and debt situation.
Do not be a slave to the bank!

The Money Trap – How Banks Control the World Through Debt


If you live + work in a cosmopolitan / urban / metropolis environment of constant ad bombardment of enjoy first, pay later (& suffer indefinitely compounded by multiple credit card interest) and social circles of Bing Chui, the avoidance of slavery to the banks or Ah longs is a hard act as vouching celibacy for life. Unless one has personally gone thro’ the hardship & karmic lessons of uncontrolled spending, there is no way to be sure one can be totally free from such worldwide slavery practice of post modern materialism of Bing Chui lifestyle. Desire > Sleepless Ego >… Read more »


Now you know why our banks are making so much profit!
But we are still paid very little interest for our savings!

Thanks for the video, Don. Keep it coming.


I am not worried about the financial situation of Penang government.

More focus is to be set on the wastage of public fund by the BN civil servants as reported by the AG.


Yes, we should not be distracted by the BN’s mainstream media that deflect real problems caused by BN. Anything they report on Pakatan is always in negative light.

Luang Luang Kee Keh

waah lau eh! (anil dont censor this as this is a sign from young people these days of escalating lving cost) mana eh sai hampalang chial lak liao!

kopi or kau kau up 10% now RM1.2 ?
coti canai (pain no telur) up 10% now RM1.1 ?
char hor fun up 10% now minimum RM5.50 ?
lorong selamat char kway teow breaks RM10 price barrier gor sure !


No direct price increase yet as these vendors now serve you 10% less in food rationing!

Chiak Boh Pa

Any which way, we will have to pay more for street hawker food but chiak boh pa.
The only difference is you will be served by Indon maids or Myanmar apprentice cooks.
Any which way, penang ori-maestros will have a nice, relaxed time to:
hike up prices
employ cheapo cooks and maids
have fun at Genting or Penang Turf Club
cruise with China little dragons

Chiak Ho Liao

Chiak Boh Pa You got not enough to fill stomach then better look for those unknown hawkers. Ori-maestros don’t give a hoot if you ask for more “liao” as they will say go fly kite as they have regular die hard fans who continue to “respect” them to the extent that most have fat pay checks. don’t believe go take the day or nite cruise and you can witness people like them who gamble away like nobody biz as money comes to them easily ! I support those hawkers who care for customers stomach first then think of their own… Read more »


Next year is the Year of the Galloping Horse. Hear everywhere, prices to gallop as fast & as high as Ta Ma Cai horses. As for Penang Island street hawker food, here’s my suggestion: To Chiak Pa Pa, go to the lesser known hawkers & those who cook to satisfy empty stomachs with the most basic of liao. To Chiak Shiok Shiok, save every cent for a once-a-month food binge at your favourite Ori-Maestros. And don’t forget to sing in your stomach for a good digestion of heavenly street cuisine paid for in blood, sweat & tears money. But one… Read more »


Don, Its not a surprise. It has been foreseen once GE is over. More comming especially the spiral effect. IPP still get concession and its all paid for by us.

Don Anamalai


Electricity hike 15%, or every 1000kWh up 4.9 sen!!!

Year-end surprise by BN!

ps: IPPs still get concession?


LGE is an accountant by profession and hence is smart enough to gerrymader to a surplus or how to get rid of debt. Just like the Penang debt that were lowered from 630 million to 30 millions by way of transfer of RM600 over millions of PBA assest to Fed govt in return for a write of the debts. In hokkien its call lam par par lan. LGE and rocket are now learning fast the art of propaganda. Like a 30% loan to only 103 houses and propanganzide as if thousand has been given out.

ChinaPek Towkay

Liak tung, pua tay: Promise more at a loss (can, can), then deliver half of what’s promised according to what’s paid bean by bean.
One way of gau chan (complain pitifully) in front of customers or clients.


You have forgotten that Penang contributes larger revenue to federal coffer. How many money Penang got in return? One got to ask these questions. Why such a big foul up between singapore & malaysia? Why Brunei refuses to join Malaysia?

Don Anamalai

Off topic (sorry).

Since you have strong interest in ‘social divide’, the youtube video here should be of interest to you.

Rich and Poor – How Divided is Germany?

Hope to have your commentary on this matter in Malaysia while BN is supposedly bringing us to high income nation.


High income nation?
Yes, we will become millionaires when Ringgit got devalued like Indonesia Rupiah!


If you read the October 28 issue of Time magazine, you will note that the middle class in USA is shrinking because of job loss and high debt. They are leaving the high-cost states of California, New York and Illinois to settle in the state of Texas (lower cost, more job opportunities depite lower pay) to stretch their dollar. I have seen many readers in the blog complaining about the high cost in Penang. I suppose soon we will notice the exodus of those middle-class to lower-cost states like Kedah? Their departure from Penang will be replaced by the rich… Read more »


come to think Kedah not that bad after all.
The hijau kuning padi fields, the swaying coconut trees welcoming us, yet to be idolised ori-maestro food masterchefs aplenty awaiting our discovery ?

Ed G

It is better to be prudent or pessimistic in budgeting than to run out of funds midway and to call for and parliamentary/assembly sitting to pass a supplementary budget which is kind of common nowadays.


LGE is an accountant by profession hence the prudent approach & it should remain that way.


I have questioned this before together with MPPP’s budget planning. They always planned for a deficit budget and ended with a surplus. One reason for doing this, I think, is they do not have to be accountable for a deficit knowing they have a (hidden) surplus at the end of the year. That way, they can blow their planned expense. In a private enterprise, the financial officer would have been kicked out for poor planning. One thing we need to know is their planned vs actual expense for the year for certain line items. Creative accounting, I would think.


Surplus State Fund + Budget Deficit = Money Not Enough (to borrow from Kia Su SingLand penchant). This the Feds have to listen till the ears ache – where got enough state development fund? At the end of the year > bravo we have achieved a miraculous surplus, another portfolio to house in a CAT Museum. Killing 2 birds with one CAT stone is how this politics of opportunity (to blame the Feds rightly + betterment of CAT Political Bing Chui) works. But then again, No Money No Talk Syndrome still kicked in the face of those altruistic talented Penangites… Read more »


Its a reflection of the extreme culture of opportunism that has been now part of our political process that the Penang govt has to basically keep the budget unrealistically conservative, so as not to alert the opportunist the real plans..


It’s better to be conservative rather than extremely optimistic. At least when you are under spend, you can table a supplementary budget