THE Penang government has tabled a RM901.19 million budget for 2019, a decrease from last year’s RM1.213 billion.

The budget will cover operation and development expenditures.

Chief Minister Chow Kon Yeow said the state is also expecting a revenue of RM505.5 million, which will result in a deficit of RM395.69 million.

“The projected revenue is lower because the state has limited resources and no new sources of income.

“But the state will try to double the collection of revenue from fixed deposits and investment interests and dividends,” he said when tabling the budget today.

Chow also said the deficit is unavoidable as the state has to continue spending on development and administration, as well as to ensure an efficient public service.

The proposed development budget for 2019 is RM306.37 million, down by 55.27% from 2018’s RM684.97 million. Some of the funds will go to high-impact projects like flood mitigation.

Other than expenditure for welfare schemes and others, the state will spend more next year on civil servants’ salaries - RM179.01 million compared to RM176.96 million in 2018 - due to salary increases.

Expenditure for services and supply will also increase by 8.6% next year from RM158.54 million to RM172.13 million.

Smaller deficit

However, Chow said the projected deficit next year is much lower than what was expected for this year, which was at RM748.5 million.

“The deficit is 47% less because the state no longer gives loans to state statutory bodies. We had to take this drastic measure after considering our finances,” he said.

But he said the state is optimistic that Penang can maintain its surplus budget record.

“We estimated a deficit of RM667.11 million in Budget 2017 but we recorded a RM51.16 million surplus instead, which contributed to the state’s reserve of RM1.09 billion.

“We are positive and we hope we can achieve this again in 2018 and 2019,” he said.

Since the DAP took over as the state government in March 2008, Penang has recorded surplus budgets annually.

Bonus for civil servants

Meanwhile, Chow also announced a half-month or minimum RM1,000 year-end bonus for Penang civil servants.

The payout of a total of RM5.23 million for 3,915 civil servants will be made next month.

He also said 1,590 kafa teachers and supervisors, 270 Sekolah Agama Rakyat teachers, 182 Sekolah Menengah Agama Rakyat teachers, and 572 private Chinese school teachers and staff will receive RM300 each.

Meanwhile, another 240 tahfiz school, sekolah pondok and Islamic kindergarten (Tadis) teachers will get RM200 each.

The entire payout, also to be made next month, will cost the state RM832,000. – November 9, 2018.