GEORGE TOWN: Selling state owned land to cover government expenditure is certainly not the best move, Penang State Legislative Assembly Opposition Leader Muhammad Fauzi Yusof told the state government today (November 27).
Muhammad Fauzi, PAS - Sungai Dua, said the 2024 Budget presented by the Chief Minister last Friday saw expenditure exceeding RM1 billion for the first time, compared to an income of RM533.08 million, resulting in a deficit of RM514.52 million or 55 per cent.He added that such a move would lead to the state losing more valuable assets.
"Do not allow all the land in this state to be mortgaged to other parties," he said during the debate on the 2024 Supply Bill and Development Budget Proposal at the Penang State Assembly sitting, here today (November 27).
Instead, he proposed that the state government develop land through Private Public Partnerships (PPP) or government and private sector collaborations.
He explained that in this way land would still be owned by the government and developed by a private company, which would pay a concession to the government.
Muhammad Fauzi said the Budget was in deficit from 2011 to next year causing reserves to shrink to RM1.67 billion as of November 15.
"This is a very unhealthy trend for the state of Penang's finances. If this strategy continues, there is concern that the state government's finances will not be sustainable in the long term," he said.
Muhammad Fauzi also wanted to know about the government's solution to top up reserves and reduce the deficit.
Last Friday, Penang Chief Minister Chow Kon Yeow presented the 2024 Budget amounting to RM1.422 billion, of which RM1.047 billion was allocated for operating expenses and RM374.718 million for development expenses.
Chow said next year, the state government expects to collect a revenue of RM533.08 million, which will result in a deficit of RM514.53 million. — Bernama
