Penang to give bonus, waive assessment rates to tackle rising cost of living

The Penang Government has tabled a deficit RM1.1 billion Budget 2016, the state’s fifth straight deficit since Budget 2012 tabled in Nov 2011. The deficit was an increase by 11.36 per cent or RM112.83 million from last year’s RM992.8 million.

Among highlights, Penang Chief Minister Lim Guan Eng estimated that his administration would spend RM20.7 million to pay the Goods and Services Tax (GST) and fund the replacement of old government vehicles. “The government has accumulated RM880 million in reserves in the last seven years, compared with RM373 million in reserves accumulated over 50 years until 2008 by the previous Barisan Nasional (BN) administration,” said Lim.

The RM220 million contribution to the state Consolidated Development Fund (CDF), he added, was to fund the Penang Government’s RM216 million Budget for affordable housing schemes in the state.
Budget 2016 sees RM346 million for development expenses, a hike by 53.4 per cent or RM120 million from this year’s RM225 million. The state allocated RM952 million for supply expenditures inclusive of RM26 million for liability expenses.

Penang Opposition Leader Jahara Hamid said that she would work on the details and debate on various aspects of the Budget when the State Assembly resumes business on Monday November 16 after the Deepavali holidays.

“It’s an accounting fiasco. The budget was inflated to be in deficit. Anybody can do that,” claimed Jahara.

“The state budget was deliberately overestimated to hoodwink the public into believing the Pakatan Government had saved more money than the BN Government.”

She charged that the Chief Minister was trying to portray his administration as better finance managers than the previous administration. “The Budget was clearly pre-planned to make the state government look like as if it had saved money,” she added.”