PENANG TABLES 2025 BUDGET WITH HISTORICALLY LOW DEFICIT OF RM33.63 MILLION

GEORGE TOWN, Nov 22 (Bernama) – Penang has tabled its 2025 Budget amounting to RM940.223 million for operating expenses, with the lowest projected deficit in the state's history at RM33.63 million.

Chief Minister Chow Kon Yeow while tabling the budget themed 'Ekonomi Madani, Rakyat Diperkasa, Negeri Sejahtera' at the Penang State Legislative Assembly today said, the 2025 Budget was RM106.78 million less than the 2024 Budget, which was RM1.047 billion.

He noted that the 10.19 per cent reduction reflected a realistic approach, sending a clear message that the state government prioritised pragmatism over idealism in considering the long-term fiscal sustainability of the state.

"The reduction in the 2025 Budget involves non-statutory expenditure and restructuring the allocation of funds, which include programmes under the MMK Committee, operating grants for agencies, statutory bodies, and state government-linked companies (GLCs), as well as contributions to the State Development Fund.

"Despite the reduction, the 2025 Budget will not hinder the momentum of high-impact projects such as Gurney Bay, the Penang Transport Master Plan (PTMP), flood mitigation projects, and state road upgrades," he said.

Chow added that the state government aimed to collect RM906.59 million in revenue for 2025, comprising RM223.65 million in tax revenue, RM570.41 million in non-tax revenue, and RM112.53 million in non-revenue receipts.

In comparison, he said the estimated state revenue for 2025 represented an increase of RM373.51 million, or more than 70 per cent higher compared to the estimated revenue for 2024, which was RM533.08 million.

"This significant step underscores the state government's commitment to redouble efforts in boosting state revenue collection for 2025. With the dedication of all state departments, the government is optimistic that this revenue target can be achieved.

"Considering the estimated state revenue of RM906.59 million against the estimated expenditure of RM940.22 million, the 2025 Budget records the lowest deficit in Penang's history at RM33.63 million," he said.

-- BERNAMA