Penang Tables RM1.074 Bln Budget For 2027 With Lowest Deficit Of RM5.62 Mln
GEORGE TOWN, Oct 30 (Bernama) -- The Penang state government today tabled its budget for 2027 amounting to RM1.074 billion, comprising RM1.042 billion for operating expenditure and RM280.17 million for development expenditure.
Chief Minister Chow Kon Yeow said the operating expenditure comprises RM1.042 billion for supply expenditure and RM31.92 million for charged expenditure, representing a decrease of RM13.49 million or 1.24 per cent compared with that for this year.
He said the state is expected to collect revenue totalling RM1.069 billion next year, resulting in an estimated budget deficit of RM5.62 million, which is the smallest projected deficit in the state's fiscal history.
The projected deficit for 2026 is RM19.92 million.
The operating expenditure comprises grants and fixed charges totalling RM607.96 million (56.58 per cent), emoluments at RM231.8 million (21.58 per cent); services and supplies at RM219 million (20.38 per cent); assets at RM4.32 million (0.4 per cent); and other expenditures at RM11.38 million (1.06 per cent).
“The RM5.07 million, or 2.24 per cent, increase in emoluments is due to the annual salary increments for civil servants, while the RM17.47 million higher services and supplies expenditure for 2027 is attributable to the minimum wage increase to RM2,000 effective June 2027,” he said when tabling the budget at the Penang State Legislative Assembly today.
Chow said the budget, themed “Merakyatkan Visi, Menempa Legasi”, is anchored on five core thrusts: driving a high-value economy; strengthening the state's infrastructure and resilience; developing talent and generation potential; ensuring the people’s well-being and harmony; and strengthening governance and upholding trust.
He said a total of 514 projects have been identified for implementation next year, covering public infrastructure, community facilities, sports development and strategic economic projects.
According to him, top priority would be given to projects aimed at strengthening the state's transportation network and connectivity, including land acquisition for the Mutiara Line Light Rail Transit (LRT) project, Airport Link Road and access routes to Silicon Island, as well as the development of Gurney Bay Phase 2 and projects under the Penang Transport Master Plan (PTMP).
He said Penang's economy has continued to perform encouragingly, recording growth of 7.3 per cent in 2025, with a gross domestic product (GDP) of RM130.3 billion compared with RM121.4 billion in the previous year.
Chow noted that the growth rate surpassed the national economic growth of 5.2 per cent, with the manufacturing sector contributing 47.3 per cent to the state's GDP while the services sector accounted for 46.7 per cent.
Penang also recorded 177 approved manufacturing projects in the January-June 2026 period, involving investments worth RM17.32 billion that could potentially create 19,337 job opportunities.
He said state revenue collection increased to RM1.26 billion last year from RM810.46 million in 2024, representing an increase of RM449.52 million or 55.46 per cent.
Meanwhile, the state's Budget 2025 performance also recorded a surplus of RM366.93 million against a deficit of RM174.09 million in the preceding year.
-- BERNAMA