The oil royalties may have been returned, but the state’s debt has been rising and it posted a deficit for 2007
One night, when I was unable to fall asleep, I opened up the Auditor-General’s Report for 2007, thinking it might be a cure for insomnia, but what I saw caught me completely by surprise.
I found out that the state once again started receiving its oil royalties from the federal government (coming from the Dana Khas or Special Fund). No surprise there:
2003 – Nil
2004 – RM150 million
2005 – RM1,015 million
2006 – RM1,334 million
2007 – RM1,000 million
But, and this is where it gets interesting, the state government’s debt to the federal government has been rising during the same period:
2003 – RM891 million
2004 – RM919 million
2005 – RM922 million
2006 – RM903 million
2007 – RM937 million
These are largely due to federal loans, taken out for “water supply” and “low-cost housing” projects.
Despite the substantially increased income to the state, Terengganu’s accounts show a deficit of RM284 million for 2007 compared to a surplus of RM184 million for 2006.
That’s because the expenditure in running the state has soared from RM128 million in 2003, the last year of Pas rule, to RM1.5 billion in 2007! This is due to a sharp increase in the payments to various state agencies. Truly amazing.