News & Articles Budget needs no recalibration, state income non-GST dependent, says Lim
Budget needs no recalibration, state income non-GST dependent, says Lim
19 Jan 2016
Unlike the federal government, the Penang government does not need to recalibrate the 2016 state budget, says Chief Minister Lim Guan Eng said.
Penang Chief Minister Lim Guan Eng says the state budget has no need of recalibration because the state’s expected income is certain and transparent, with no leakages.
Our expected income is certain and transparent. We have no leakages, so we don't need to recalibrate the state budget.
"What we presented last year holds," he told reporters at his Komtar office today.
Lim said the Penang government, under Pakatan Harapan since 2008, had never tabled a supplementary budget.
"When you need one, it means your estimated budget was wrong," he said.
Lim added that although the Penang government tabled a deficit budget annually, it still managed to record surpluses that were verified by the Auditor-General.
He said when it came to land acquisition, the state had to mark up the price by a minimum 25% to take into account contingency costs.
This led to the state estimating a deficit budget, but the government would later manage to save money through open competitive tenders, and not direct negotiations, he said.
"These savings allow us to record surpluses every year," he said.
Last November, Lim tabled the state government's eighth deficit fiscal budget of RM1.1 billion for 2016, which is 11.36% higher than last year.
The budget, themed ""Inclusive Growth and Sustainable Development, includes a 10.4% increase in operating expenditure at RM979.53 million and 53.44% hike in development expenditure at RM346.12 million.
The operating expenditure comprised supply expenses of RM952.7 million and RM26.8 million liability expenses under the state consolidated funds.
Under the supply expenditure, RM163.5 million goes to emolument, RM145.5 million for services and supply, RM7.3 million for asset acquisition and RM5.15 million for other expenses.
The largest component, or 66.25% within the grants and fixed payments under the operating expenditure, which amounts to RM220 million, is allocated to the consolidated development fund.
The increase in the development fund is to support development projects this year. The allocation also takes into consideration the RM100 million set aside for housing and economic reserves.
Meanwhile, the state expects RM687.4 million revenue this year, up by RM30.47 million or 4.63% from last year.
Prime Minister and Finance Minister Datuk Seri Najib Razak is scheduled to present the recalibrated budget, which reflected the current economic climate, on January 28.
Penang Chief Minister Lim Guan Eng says the state budget has no need of recalibration because the state’s expected income is certain and transparent, with no leakages.
Our expected income is certain and transparent. We have no leakages, so we don't need to recalibrate the state budget.
"What we presented last year holds," he told reporters at his Komtar office today.
Lim said the Penang government, under Pakatan Harapan since 2008, had never tabled a supplementary budget.
"When you need one, it means your estimated budget was wrong," he said.
Lim added that although the Penang government tabled a deficit budget annually, it still managed to record surpluses that were verified by the Auditor-General.
He said when it came to land acquisition, the state had to mark up the price by a minimum 25% to take into account contingency costs.
This led to the state estimating a deficit budget, but the government would later manage to save money through open competitive tenders, and not direct negotiations, he said.
"These savings allow us to record surpluses every year," he said.
Last November, Lim tabled the state government's eighth deficit fiscal budget of RM1.1 billion for 2016, which is 11.36% higher than last year.
The budget, themed ""Inclusive Growth and Sustainable Development, includes a 10.4% increase in operating expenditure at RM979.53 million and 53.44% hike in development expenditure at RM346.12 million.
The operating expenditure comprised supply expenses of RM952.7 million and RM26.8 million liability expenses under the state consolidated funds.
Under the supply expenditure, RM163.5 million goes to emolument, RM145.5 million for services and supply, RM7.3 million for asset acquisition and RM5.15 million for other expenses.
The largest component, or 66.25% within the grants and fixed payments under the operating expenditure, which amounts to RM220 million, is allocated to the consolidated development fund.
The increase in the development fund is to support development projects this year. The allocation also takes into consideration the RM100 million set aside for housing and economic reserves.
Meanwhile, the state expects RM687.4 million revenue this year, up by RM30.47 million or 4.63% from last year.
Prime Minister and Finance Minister Datuk Seri Najib Razak is scheduled to present the recalibrated budget, which reflected the current economic climate, on January 28.
Source: Themalaysianinsider.com