Penang tabled a RM292.13 million deficit budget for 2016, an increase of RM61.82 million compared to last year’s deficit, which stood at 230.31 million.

Chief Minister Lim Guan Eng said this deficit would be supported by the state’s consolidated savings which stands at RM880.75 million at the end of 2014.

Lim, who is also DAP secretary-general, said the state has been tabling a deficit budget since 2008.

He added that the state has been able to increase its reserves from RM373.59 million at the end of 2007 to RM880.75 million at the end of the year, an increase of RM507.16 million, or 135.75 percent.

“This means that the financial performance of the state in these seven years (from 2008 to 2014) with a surplus budget amounting to RM507 million is better compared to the previous 50 years (from 1957 to 2007), which is RM373 million,” Lim said.

“Despite tabling a deficit budget, due to its sound financial management and the increase in collection, reduction in arrears and effective expenditure practices, including the practice of open tender, we have been able to end the year with surpluses,” Lim said while unveiling the budget at the state legislative assembly today.

Lim said the total budget for 2016 amounts to RM1.105.65 million, which is RM112.83 million or 11.36 percent higher compared to this year’s total budget, which is RM992.82 million.

He added that the expected revenue for 2016 is RM687,396,910, an increase of RM30.47 million or 4.63 percent, compared with RM656.93 million in 2015.

“The expected increase is due to the land premium payment for Bayan Mutiara (in Bayan Lepas), the increase in the state’s investment and other revenues for next year,” he said.

The estimated management budget of RM979.53 million has increased to RM92.29 million, or 10.4 percent compared to 2015.

“The increase this year is due to the increase in contributions amounting to RM220 million - the highest so far - to the State Development Fund. In 2015, this amount is RM120 million,” Lim said.

“This is necessary to pay for development projects which will be implemented in 2016, and to prepare for a RM100 million housing and economy reserves,” he added.

Lim also announced an increase in the proposed development budget, from RM225.58 million in 2015 to RM346.12 million for next year, an increase of RM120.54 million or 53.44 percent.

He explained that the increase is due to the state government’s initiative to prepare a reserve of RM100 million to address any economic crisis, so that the state’s development plans can continue without a hitch.