GEORGE TOWN: Penang today tabled a RM935.22 million budget for next year, themed "Accelerating Penang2030", with a projected deficit of RM449.80 million, which is a higher deficit compared to this year's budget.
For this year, Penang had tabled a RM909.82 million budget, with a projected deficit of RM403.8 million.
This is the 11th consecutive deficit budget for Penang since 2011.
According to Chief Minister Chow Kon Yeow, the increase in budget is due to the increase in annual emolument, giving of grants to state government's subsidiary companies, the implementation of the recovery plan post-Covid-19 pandemic and others.
"While the deficit for next year is higher compared to this year's RM403.8 million, the state is optimistic that revenue collection will be further increased through economic recovery measures currently being taken by both the state and the federal governments.
"The state government has prepared the necessary strategies to increase the revenue collection in line with the economic recovery plan, without burdening the people and compromising on their wellbeing," he said when tabling the 2022 Budget speech at the state legislative assembly sitting here today.
Chow said the higher deficit for next year would be funded by the state consolidated fund, with a balance of RM887.78 million at the end of last year (2020).
"The 2022 Budget has been drafted with prudence and much care, taking into account the state's financial capabilities, while ensuring that all state government departments function efficiently.
"Besides that, the budget is drafted to ensure continuity of all critical and high-impact development projects planned to stimulate the state's economic recovery as well as welfare projects which benefit the people.
"It is hoped that the high allocation for development projects for nine state government departments will also benefit the small-time contractors and help in the state's economic recovery which is affected by the pandemic," he added.
It took Chow two hours to outline the current status of the state's economy and the state's planning for next year, amidst the global Covid-19 pandemic.
Elaborating, Chow said it was undeniable that this year had been a challenging one for Penang due to the unexpected spread of Covid-19.
He added that Penang had recorded the highest number of daily Covid-19 cases at 2,474 cases on Sept 8.
"However, I am grateful that the cooperation of the people as well as both the state and federal governments have enabled us to overcome the crisis. This is proven when we eased into Phase Four of the National Recovery Plan (NRP) on Nov 8.
"Nevertheless, we have not won against Covid-19. Rather, we have to be careful and continue to adopt the new normal to prevent further spread of Covid-19.
"This 2022 Budget also brings with it the people's hope that the Covid-19 situation can be further improved and we can achieve economic recovery soon," he said.
Meanwhile, Chow said the manufacturing, services and tourism sections served as the main contributors to economic recovery for Penang next year, albeit at a slower phase.
"For 2022, Penang's economy is expected to recover. Tourism and hospitality activities are expected to recover at a moderate level, supported by domestic tourism.
'This situation will be stabilised by the growth in the manufacturing sector, particularly the electronic and electric (E&E) sector.
"Nothing is more important for the state government except to find the best formula to help those affected by the pandemic. That will be our main focus for next year for all socioeconomic segments in the state," he added.