T’ganu’s debt, deficit soars despite return of royalties

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k-terengganu-by-election-002The 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.

READ MORE:  Reformasi (bukan Reklamasi-lah)! The 'compensation' spin
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mut
mut
13 Jan 2010 1.10pm

The same thing has been happening in Kedah, the most indebted state in the country.

How on earth the Ketuanan Melayu gang managed this? I don’t know!

FEDUP
FEDUP
15 Apr 2009 1.14pm

Sana masuk , sini masuk, depan masuk, belakang masuk mesti la banyak hutang….. ini semua adalah adegan United … Gang la.

mut
mut
17 Jan 2009 2.58am

The state government expenditure should be scrutinised ! Such a big jump in expenditure is sure to raise eyebrows.

So now it is petroleum royalty. Whatever happened to Wang Ehsan? Anyone want to ask Bapak Wang Ehsan this question?

chong
chong
16 Jan 2009 11.38am

vote wisely KT voters. you all are very blessed to have the 2nd chance and all the huge goodies.

datoseri
16 Jan 2009 9.46am

loose74 is right…Kelantan and Terengannu are traditionally leanning to PAS as opposition. It is not unreasonable to believe that it is the BN/UMNO strategy to put the states to near bankrupt position so to easily asserting control and bating the voters with more money.

However, the corrupt had not been expecting their strong hold in states like Selangor, Perak, and Penang crashed down without a sign (or that they were blinded with 50 years in power and being arrogant).

Tian Ng
Tian Ng
16 Jan 2009 8.29am
looes74
looes74
15 Jan 2009 9.07pm

Imagine if only Terengannu state government kenna taken over by PR. I guess BN’s game plan is to bankrupt the state coffer so that it would remains in the hand of BN

Precisely, why I say? Federal government must be taken over as soon as possible. Otherwise, some old vicious cycle would continue