KUALA TERENGGANU: The state government tabled a deficit budget for 2020 of RM166 million on the back of a projected revenue of RM1.66 billion.
The deficit is 10 per cent of its expenditure, which is projected to reach RM1.832 billion next year.
In tabling the budget today, Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said that of the total projected revenue, 85.41 per cent will be contributions from the federal government.
Of the total expenditure, RM700 million will be allocated for development and RM1.63 million for water supply.
He said revenue from taxes is expected to contribute RM66.93 million, while non-taxable revenue will total RM1.43 billion.
Samsuri said that the state government received 1,367 proposals before accepting 132 plans for implementation under the 2020 budget.
He said that while national gross domestic product (GDP) shows moderate economic growth at 4.7 per cent this year, Terengganu’s growth has slowed to 2.5 per cent.
"However, the per capita GDP for the State increased from RM29,855 in 2018 to RM30,216 this year," he said.
Samsuri said that the state government is shouldering a heavy financial burden after Cabinet decided to reduce petroleum cash payments by 25 per cent from this year onwards, as settlements for its debts to the federal government.
"Although this forced payment has helped reduce the state government’s debt to RM425 million, it has put pressure on the state treasury.
"Moreover, the debt repayment also included the balance which has yet to mature. At the same time, the state government is committed towards servicing its backdated and scheduled debt amounting to RM403.48 million in 2020.
"God willing, our difficulties will ease in 2021 after all our debts to the federal government are settled," he added.
However, Samsuri said that the federal government still owes the state government RM1.431 billion for the construction of the East Coast Expressway and said that he hopes it will service its debt as soon as possible.
Samsuri also said that the federal government, in its 2020 Budget, did not make allocations for mega projects in Terengganu which could become catalysts for economic growth.
"But we will not be disappointed, because it will only push us to work harder to ensure progress in the state.
"We will continue to cooperate with the federal government in the interest of the people and progress of the state," he added.