Penang expects first budget deficit in 2018

> State will need to inject millions to rebuild homes and infrastructure after floods, says CM

GEORGE TOWN: Penang is expected to record its first budget deficit next year following a need to inject millions of ringgit into rebuilding the state after the devastating floods, which swept through its five districts over a week ago.

The state has been recording surpluses in its budget since 2008 but Chief Minister Lim Guan Eng admitted that it may be difficult next year in view of the need to spend millions to help alleviate the illeffects of the floods.

Although the damages have yet to be established, the state is expected to incur multi-million ringgit losses due to major destruction to public and private properties.

On Nov 2, Lim tabled a deficit budget of RM740.5 million for 2018, saying it was an estimate but it can be reduced if the state records a higher revenue collection.

Penang is also expected to spend additional millions to mitigate the rivers and hillsides after a total of 131 forms of landslides were detected during the rainstorm on Nov 4 and 5.

It was reported that 80% of the state was inundated with floodwaters while up to 9,000 people were temporarily displaced during the height of the floods.

Lim had earlier announced a fund of RM100 million has been set aside, and he topped it up by an additional RM5 million to provide more temporary relief to thousands of flood victims.

The state also plans to pay out RM700 one-off payment to each household before year-end as a temporary relief payment to 10,000 affected families. This will be disbursed after the RM400 one-off payment is paid out to those affected by the Sept 15 floods.

The state has urged the private sector to donate generously to a relief fund. Lim said the target is RM20 million, and as at noon yesterday, RM9.6 million has been collected. If the target is not met, he said the state will top it up.

The Federation of Malaysian Manufacturers northern chapter yesterday came forward to contribute RM350,000 to the fund.

Its president, Datuk Ooi Eng Hock, handed over a mock cheque to Lim at the sidelines of the state assembly sitting.

Lim also urged the federal government to expedite relief aid to the victims, saying it is not to aid the state but the people here.

... Kampung Permatang Rawa flood victims receiving mattresses from Rural and Regional Development Ministry officials in the compound of the Permatang Rawa Kemas kindergarten yesterday. They are among thousands who were affected by the rainstorm that...