Penang projects record low budget deficit of RM5.26mil for 2027

 This is a drop from this year's targeted deficit of RM19.92 million.

Chief minister Chow Kon Yeow before tabling the RM1.074 billion Penang budget for 2027 in the state assembly today. (JohnShen Lee pic)

GEORGE TOWN:

The Penang government has tabled a RM1.074 billion state budget for 2027, with a projected deficit of RM5.26 million, its lowest to date.

Chief minister Chow Kon Yeow (PH-Padang Kota) said next year’s budget, which is RM14 million smaller than this year’s RM1.088 billion allocation, would have a record-low deficit of RM5.26 million based on projected state revenue of RM1.069 billion.

This marks the second consecutive year Penang has recorded its lowest budget deficit, following the RM19.92 million deficit projected for 2026.

Chow said Penang collected RM847.53 million in state revenue from January to Oct 30, equivalent to 79.35% of its annual revenue target.

“The state government will continue to monitor revenue collection and intensify efforts to ensure the 2026 target of RM1.068 billion can be achieved,” he said when tabling the 2027 budget in the state assembly today.

Chow said the state’s quit rent collection rose by 44.41%, or RM51.54 million, to RM167.59 million as of Oct 29, compared with RM116.05 million in 2025.

He said the revenue increase was made possible by the quit rent review conducted this year, the first in 32 years.

“For 2027, the state government has agreed to maintain the 50% land tax rebate, subject to the relevant conditions,” he said.

Chow also announced special financial assistance equivalent to a month’s salary for civil servants in the state.

He said the state would allocate RM58 million to its i-Sejahtera aid programme and RM8 million to the Bantuan Agenda Ekonomi Saksama initiative next year.

The state government has also earmarked RM16.8 million in subsidies for public bus programmes, RM9 million for one-off RM600 incentives for e-hailing drivers, and RM1.2 million in incentives for taxi and school bus drivers.

A sum of RM16.45 million was allocated for flood mitigation projects, while RM6.5 million was set aside for agricultural initiatives.

The state allocated RM7.15 million to the Penang State Sports Council (MSNPP) for athlete development, and RM5 million to the Penang Stadium and Open Space Corporation for sports infrastructure upgrades.

As Penang is set to co-host the SEA Games next year with Kuala Lumpur, Johor and Sarawak, the state government has also allocated RM15 million to MSNPP to prepare for the regional championships. - FMT