Penang CM tables RM940.22m budget with lowest deficit to date

GEORGE TOWN, Nov 22 — Penang Chief Minister Chow Kon Yeow today tabled a RM940.22 million state budget for 2025, with a projected deficit of RM33.63 million.

He said the 2025 budget has a projected revenue of RM906.59 million, which led to the lower deficit after taking into account the state’s consolidated funds of RM50 million by January 1, 2025.

He said the 2025 budget was the lowest deficit in the state’s history after tabling the 14th deficit budget since 2011.

“Retrospectively, the budget that was approved for 2024 totalled RM1.046 billion and the state has taken proactive steps to increase the state’s consolidated funds when entering 2025,” he said when tabling the Supply Bill at the state legislative assembly today.

“Relatively, the size of the budget for 2025 or RM940.22 million is lower by RM106.78 million compared to the 2024 budget,” he said.

He said the reduction of 10.19 per cent also took into account the actual expenditure of 2023, which totalled RM951.76 million.

He said the state consolidated fund has also continued to drop compared to 2019.

According to the state records, the consolidated funds totalled RM1.154 billion in 2019, RM887.78 million in 2020, RM848.81 million in 2021, RM688.85 million in 2022 and RM330.03 million in 2023.

“The reduction in Budget 2025 will not impact the implementation of high impact projects such as Gurney Bay, Penang Transport Master Plan, flood mitigation projects and upgrading of state roads,” he said.

He added that the state’s social welfare programs such as i-Sejahtera and public transport subsidies will also continue to be implemented.

In addition to reducing its expenditure, he said the state is also focusing on increasing its revenue.

“On average, the state’s revenue is about RM601.81 million per annum between 2019 and 2023,” he said.

He said if the trend was to continue, the state faces the risk of depleting its consolidated funds next year.

“Therefore, the state is targeting a revenue collection of RM906.59 million for next year,” he said.

In comparison, the expected revenue collection for 2025 showed an increase of RM373.51 million or 70 per cent higher than the estimated revue for 2024 at RM533.08 million.

“This drastic hike showed the state’s commitment to increase its revenue in 2025,”he said.

Chow later also announced a special cash aid of half month or a minimum payment of RM1,000 to all 4,022 civil servants in the state.

He also announce cash aid of RM300 each to Kafa teachers, religious school teachers, Tahfiz teachers and private Chinese school teachers and staff.

He said the total amount to be given out under the special cash aid totalled RM6.88 million and will be paid out in December.