GEORGE TOWN: The 2022 Auditor General's Report revealed that Penang's financial position is strong despite recording a 105 per cent increase in overall deficit.
The report said, in 2022, the state government recorded an overall deficit of RM295.68 million compared to a deficit of RM144.24 million in 2021, representing an increase of RM151.44 million (105 per cent).
It said the current year's deficit increase was attributed to the state government's funds of RM595.06 million, consisting of tax revenue, non-tax revenue, and non-revenue receipts — not sufficient to cover the total expenditures of RM890.74 million.
The expenditures comprised operating expenses of RM665.02 million and development expenses of RM225.72 million.
"Overall, the state government's financial performance in 2022 is robust with the consolidated fund balance decreasing by 12.2 per cent to RM1.859 billion at the end of 2022 compared to RM2.117 billion in 2021.
"The current year's deficit of RM295.68 million is financed by loan repayments and various receipts amounting to RM57.27 million, as well as cash, investments and trusts totaling RM238.41 million," the report said.
The report also said that a total of 2,420 development projects had been planned to be implemented in 2022.
It said, of the total, 2,332 projects (96.4 per cent) had been completed.
It also said that five departments managed to complete all the projects planned for 2022, another 28 projects (1.2 per cent) are being implemented while 18 projects have yet to begin.
Meanwhile, the AG recommended that the state government increased its revenue collection and continued to spend prudently.