Chief Minister Lim Guan Eng was ticked off for increasing allocation for P01 (CM’s office and the state secretariat) every year since 2012 when he does not actually spend most of the budget.

Shah Headan Ayoob Hussain Shah (BN-Teluk Bahang) said the state’s financial records show that the actual spending for PO1 falls short of Lim’s proposed budget.

Lim's response in the August House failed to convince him that the CM had presented a "good budget" this year, Shah Headan said.

“A private company needs to reduce cost, but a government needs to spend money for the benefit of the people,” Shah Headan told reporters after Lim winded up his speech on the state’s 2017 Budget.

Waving a copy of Lim's P01 expenses, Shah Headan cited an example where in 2012, the actual funding for P01 was RM204,502,797.98.

In 2013, Lim allocated RM236,756,533.00 for his office and the state secretariat.

“You know that you will use only about RM200 million every year, so why do you keep increasing and increasing your allocation year after year?” Shah Headan asked.

“A good budget will depend on your actual spending for the year,” he added.

'Explain under-spending'

On Nov 15, Lim tabled his ninth deficit budget of RM667.1 million at the Penang legislative assembly, saying he would overcome the deficit with the support of the state’s reserves.

Shah Headan urged Lim to question all the department heads under his administration on why they request for amounts that they do not actually spend.

He said Lim should issue a show cause letter to the departments or ask them to put in writing why they ask for so much funding when their actual spending was low.

“Why ask for a high amount when you don’t actually use the money?

“Any book will tell you that a company’s budget is different from that of a government, the first makes profit, the second spends for the benefit of the people,” he said.

In response, Lim said since 2008, the state government’s financial year always ends up with a surplus, despite tabling a deficit budget.

“It is not because we did not spend the money, but it is due to the increase in the state’s revenue, our savings and careful spending (value for money) for the year”.

CM: Umno rep 'in denial'

Lim noted the state’s annual operational expenses is more than 85 percent of the budget, the standard used by the National Auditor’s Department.

“Claims that the state recorded a surplus because we spent less is utterly baseless,” Lim said.

Lim said his state government expenses show an increase in actual spending.

Despite this, there is a record of surplus in the state’s consolidated account, Lim added.

He said the auditor-general has given Penang’s financial statements a “clean certificate”, and acknowledged that it is well-updated and managed.

“It is clear you are in denial, negating the obvious and the truth which is stated in the auditor-general’s report,” Lim chided his rivals in the House.

Lim said the surplus from 2008 to 2015 have contributed to the increase and enforcement of the state’s consolidated funds.

The funds totalled RM461.61 million in 2008, but increased to RM952.53 million in 2015, a substantial growth of 106.34 percent, he added.

“Although we expect a deficit in 2017, the state government is committed to social aid programmes for the people, including the state’s Equal Economic Agenda for all.”