Penang tables RM748mil deficit budget

> State however has unique way of recording actual surpluses, says CM RM748.5 RM503.7

GEORGE TOWN: Penang has tabled a projected deficit budget of RM748.5 million for next year compared to a RM667 million deficit for this year as administration and living costs continue to escalate.

However, Chief Minister Lim Guan Eng stressed that the state has a unique distinction of tabling projected budget deficits every year but yet record actual surpluses.

Next year’s operating expenditure is RM1.25 billion while the forecast revenue collection is RM503.7 million.

The cost savings come principally through the open tender system and an efficient administration, Lim told the state legislative assembly yesterday.

After some 10 years of facing various external economic challenges, Lim said the state’s gross domestic product (GDP) is projected to outstrip the national average growth of 5.2% for this year.

Penang is targeting a GDP growth of 6% this year with the main contributors coming from manufacturing and services with farming also showing signs of promise through fish farming.

GDP per capita has increased from RM33,597 in 2010 to RM47,322 in 2016, a 30% increase.

Penang’s GDP per capita is the second highest in the country, behind Kuala Lumpur.

From 2015 to the first half of 2017, Penang attracted a total of RM13.8 billion in approved Foreign Direct Investment.

Tourism has also grown with the number of passengers at the Penang International Airport hitting 6.7 million passengers in 2016, exceeding the airport’s capacity of 6.5 million passengers.

Lim also announced a range of fresh initiatives, which pundits have described as a people-friendly fiscal plan designed to endear the state government to voters with the next general election looming near. There is an “I Love Penang” card which is a smartcard for all local residents that