‘Penang government must explain annual expenditure spikes’
KUALA LUMPUR: Penang Chief Minister Lim Guan Eng must clarify how the state government has sustained whopping spikes in its annual state expenditure, especially when it resulted in a surplus.
Barisan Nasional’s strategic communications team said the operations cost for this year was 500 per cent of what was spent in 2008 since DAP took over the state after the 13th General Election.
The team also questioned whether the Penang government had used resources derived from the federal funds, five-fold increase in assessment tax, four-fold increase in water tariffs, fine, or through selling land and state assets.
“We are aware that within the same period (2008-2017), the Federal Government’s expenditure only increased by 35 per cent.
“Lim has yet to respond to queries on how the Penang government is able to generate income in order to sustain the 500 per cent increase, which nevertheless has led to surplus.
“If the additional resources (to manage the spiking cost) came from the selling of land and state assets, why doesn’t the state government sell another plot of land valued at RM1 billion to avoid taking loans from China’s Exim Bank, which will involve interest?” the team said.
This was said in reference to the funding sought by the state government to implement the Penang Transport Master Plan (PTMP), and other related projects.
The team said Lim had admitted earlier that the high expenditures in operations were necessary to ensure the execution of projects.
The team also queried whether the loan from Exim Bank was sought since there were no more valuable land to be sold, as reportedly said recently by state executive councillor Chow Kon Yeow.
“Can the selling of state government assets, dwindling in number, to sustain state operations be considered as good governance in the long term?
“We also need a confirmation from Lim on whether the comment by Chow, published by The Edge on July 22 last year, is accurate where it was said that the PTMP cost had jumped from RM27 billion to RM46 billion.
“If it is true (the statement), how will the state government sustain the hefty increase of RM19 billion? Will it be through loans from Exim Bank or other banks?”