The Penang government has announced a deficit budget for 2012, given that several major development are in the pipeline.

azlan Chief Minister Lim Guan Eng, who tabled the budget at the state legislative assembly today , said RM332.93 million will have to be put aside for these items of expenditure.

They include projects for infrastructure, housing, community and rural development, agriculture and for land acquisition.

The deficit is estimated at RM213.71 million, which will be absorbed by the state's accumulated savings which stood at RM572.49 million as at Dec 31 last year.

"Although there is a deficit of RM107.78 in this year's budget, the state government was able to record an excess for four years under the Pakatan (Rakyat) government," he said.

Lim said the budget was drafted based on three principles - uplifting the status of the rakyat, being business friendly, and strengthening the state’s financial position.

The state has succeeded in reducing its debt by about 95.29 percent over a span exceeding three years, he noted.

A water paips mong the "optimal and effective" financial management strategies that contributed to the reduction, said Lim, was the move to migrate water assets to Pengurusan Aset Air Bhd via a deal inked on June 2.

"In March 2008 (when Pakatan took over the administration, the state’s), debts amounted to RM630.13 million. Currently it stands at   RM29.66 million, a reduction of RM600.47 million.

"We will also set 2015 as the target date to abolish poverty in Penang, following our success in wiping out hardcore poverty in 2009.”.

Budget highlights

To refute allegations that it has marginalised the Muslim community, the state government has set aside RM22.8 million to  acquire four plots of land to expand Muslim cemeteries in Jelutong, Cherok Tok Kun Atas and Taman Abdullah.

Recognising the adage that ‘women hold up half the sky’, it has allocated RM2.4 million, a three- fold increase from this year, for development projects.

Among the slew of goodies that Lim announced to the gleeful support of Pakatan assemblypersons were:

  • A half-month bonus or minimum of RM800 for civil servants, and RM300 for religious school teachers, will be paid out with their end-of-year salary.

  • Students who have obtained places in tertiary institutions and whose family income is less that RM4,000 per household will receive RM1,000.

  • Hardcore poor families, whose household income is RM600 or less, will receive RM600, or RM100 more than this year.

  • Students in Year 1-4 and Form 1-4 will receive RM100 in aid each year.

  • The 4,309 single mothers registered with the state will also receive RM100 each year.

Asked if this is an election budget, since the polls are speculated to be around the corner, Lim replied in the negative.

"This money is not to be given once only in five years unlike the promises of the federal government," he said.