The Penang Government tabled a RM39.4 million deficit Budget 2009 in the Penang legislative assembly today.

Chief Minister Lim Guan Eng's first ever budget presentation marked a RM3.7 million deficit increase from the previous government’s Budget 2008 of RM35.7 million deficit.

The overall Budget 2009 amounts to RM477.24 million, an increase by RM36.15 million from previous Budget 2008 at RM441.09 million.

Lim (DAP – Air Putih) told the House that the deficit increase was due to RM25.5 million fund allotted for the state’s social programme for people living in and below poverty level.

From the social fund, the budget allots RM17 million in form of RM100 one-off aid to 170,000 needy families and another RM8.5 million to 172 capital-aided schools, including RM4.5 million for 124 Chinese and missionary schools, RM1.5 million each to 28 Tamil and 15 religious schools, and a million for five private secondary schools.

324 harcore families

"If we were to deduct the social programme fund, Budget 2009 deficit is only RM13.9 million, much lower than the previous administration budget.

"The social programme is important to assist needy families to face the negative impact of global economy downturn," Lim told the House.

Penang has 324 families under the hard core poverty bracket with RM400 and below monthly income.

Under Budget 2009, the state government estimated income is RM291,743,300 made of RM121.28 million (41.57 per cent) non-tax revenue, RM113.82 million (39.01 per cent) tax revenue and RM56.64 million (19.42 per cent) non-revenue income.

Compared with Budget 2008 with RM282.9 million estimated income, Budget 2009 saw a RM8.85 million revenue increase.

The state government estimated administration operation expenditure is RM331,197,430 and the development budget is RM186,039,050.

The operation budget was an increase by 3.97 per cent or RM12.64 million from RM318.56 million in previous budget, while the development budget also marked a 14.47 per cent or RM23.51 million leap from previous RM162.53 million funds.

The development budget comprises RM110.96 million or 59.64 per cent in form of federal loan, including the RM80.76 million to expand the Mengkuang Dam and another RM25 million to improve supply of quality drinking water. The state government will sustain the remaining amount.

Lim also tabled a Supply Bill 2009 with a RM318,767,450 budget.

The chief minister expressed confidence that the budget would be able to mitigate effectively negative impact of the global recession.

The three-pronged strategy budget aims to stimulate economic growth in all fronts, especially in the state top two revenue earners - service, including tourism, and manufacturing sectors.

lim guan eng pkr penang media journalist attacked by pkr security pc 050808 01 It also aims to boost employment opportunities and sustain a balance socio-economic structure in the state.

The state current unemployment rate is 2.6 per cent, a per cent lower than the national rate.

In the manufacturing front, Lim told the House the state government had already attracted RM6.1 billion investments so far this year and expects the agricultural, mining, quarry and construction sectors to enjoy tremendous growth when development projects outlined in the 9th Malaysia Plan (9MP) and the Northern Region Economic Corridor (NRCR) were underway.

Promoting Penang

Penang expects to attract some 17.4 million tourists, both domestic and foreign visitors, between 2008 and 2012, or 3.48 million tourists per year. Last year some 3.4 million tourists visited Penang.

Penang Development Corporation wholly owned Global Tourism Sdn Bhd is the government company given the task to steer the Penang tourism sector for the next five years based on a 10-point strategic plan outlined by the state government.

The strategy is to promote the state's quality medical treatment and facilities; rich culture, heritage and historical values; top class infrastructure to set up multi national corporation regional headquarters and to organise international meetings, conferences, conventions and exhibitions.

Penang would also be promoted as an ideal site for movie-making, art and culture, international sports and shopping.

Lim said the budget was based on Pakatan government's CAT concept of competency, accountability and transparency, with short term and long term goals.

In the short term, the budget would mitigate the impact of economic recession while in long term it would lay a solid foundation to revitalise Penang into a dynamic, vibrant and progressive state, taking advantage of the global spur after the crisis.

"At the same time, the government cut down its expenses to accumulate funds to carry out social programmes for Penangites," he said.

A four-day debate on the budget will begin on Monday when the assembly sitting resumes.