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.