Penang state financial performance shows significant decline, say Opposition
GEORGE TOWN: The state government's financial performance recorded a 52% decline in consolidated funds, says Opposition Leader Muhammad Fauzi Yusoff.
He cited the Auditor-General's Report from October 2024, which indicated a drastic decline in the state's financial performance.
"The revenue account fell 52% in 2023 from 2022, while the consolidated trust account showed a 2.9% decrease.
"This comparison is unbalanced, especially when the state government's expenditure increased by 13.9% while state revenue decreased by 0.4% in the same period.
"If this situation continues, the state will face a critical cash flow risk.
"This could affect the state's financial management and administrative expenses, including the salaries of civil servants," he said during a press conference at the opposition room at the August House on Wednesday (May 21) along Light Street, George Town, Penang.
Muhammad Fauzi (PN-Sungai Dua) said the state needs a financial recovery plan for the next five years to address these financial risks promptly and thoroughly.
"A review of critical and non-critical expenditures is necessary.
"They need to improve their administrative structure and procedures so that the people of Penang do not fall victim to the state's management weaknesses," he said.
He emphasised the importance of raising these issues as the opposition to represent the people's voice and prevent them from suffering due to administrative shortcomings.
"Penangites deserve a responsible government that knows how to prioritise. The state should not use policies to pressure Penangites and increase charges to boost state revenue," he said.
Muhammad Fauzi addressed Chief Minister Chow Kon Yeow's plans to raise state revenue through quit rent arrears collection, state land sales, and reviewing various fees and charges.
On Tuesday (May 20), Chow outlined strategies to increase state revenue, including selling more state land, collecting an estimated RM6mil in quit rent arrears, and reviewing land title conversion processes, liquor licence fees, entertainment duties, and hotel room fees.
'The state government is also aiming to reduce expenditure, but costs continue to rise each year due to salary realignments, which increase emoluments,' Chow said in reply to a question from Goh Choon Aik (PH-Bukit Tambun) during the state assembly.
Other revenue efforts include higher animal treatment fees and revised ornamental plant rental rates at Penang Botanic Gardens.
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