Loans for land acquisition and development of Seberang Perai by the Penang Development Corporation are the basis for the huge hike in allocation for the Chief Minister’s Office and State Secretary (P01) in the Penang Budget 2017.

The loans for land acquisition and development amounts to RM609million, Chief Minister Lim Guan Eng said when he explained in detail the breakdown for the proposed expenses for PO1 for next year.

“We view Seberang Perai as the next engine of growth for the state. We want to focus on development there,” Lim said at a press conference during a break in the State Legislative Assembly sitting today.

To Lim, the state Budget 2017 announced on Nov 15 was “balanced” as it focused on both the island and mainland, contrary to criticisms that the state focused too much on George Town, which was named as a Unesco Heritage Site in 2008.

Lim had declared a total budget of RM1.45 billion for 2017, an increase of RM345 million from the RM1.105 billion allocation for this year’s budget.

He also announced his ninth deficit budget of RM667.10 million, and said it will be resolved by the state's accumulated savings (reserves), as it was done every year.

Lim's opponents have often slammed the state government for neglecting the mainland, although areas such as Batu Kawan and Seberang Jaya have seen much development.

Which is why the huge sum of RM707,611,840 allocation in 2017 to P01 has raised eyebrows, especially when compared to the sum of RM161,588,160 that was allocated in 2016.

State Opposition Leader Jahara Hamid (BN-Teluk Ayer Tawar) was not convinced, and accused Lim of "manipulating the figures".

"Instead of extending loans to PDC for land acquisition, why not use the money acquired from selling land to buy new plots to increase the state's land bank," Jahara said at a press conference today.

She also said that in a normal budget, allocations must be utilised for the whole year.

"You cannot ask for more next year," she added.