Latest news with #RM174.09
Yahoo
20-05-2025
- Business
- Yahoo
Penang posts RM65m Q1 surplus for 2025 amid new revenue push
GEORGE TOWN, May 19 — The Penang state government recorded a surplus of RM65.3 million for the first quarter ending March 31, 2025, attributed to new revenue streams and expenditure cuts, the state legislative assembly was told today. Penang Chief Minister Chow Kon Yeow announced that the state registered revenue totalling RM268,463,025.36 against an expenditure of RM203,189,122.16 as at March 31. 'This resulted in a surplus of RM65,273,903.20 for the state's finances as at March 31, 2025,' he said in reply to a question from Goh Choon Aik (PKR-Bukit Tambun). Chow attributed this positive outcome to several initiatives undertaken by the state finance department to identify new revenue streams for 2025. He detailed that as at March 31, 2025, the state's Consolidated Fund stood at RM1.535 billion, comprising a Consolidated Revenue Account of RM199.22 million and a Consolidated Trust Account of RM1.33578 billion. Providing context from the previous year, Chow said the state's unaudited financial statement for the year ending 2024 showed the Consolidated Fund at RM1.38474 billion, compared to RM1.46604 billion in 2023. This comprised a Consolidated Revenue Account of RM155.94 million and a Consolidated Trust Account of RM1.22880 billion. For 2024, the Consolidated Revenue Account decreased by RM174.09 million compared to 2023, while the Consolidated Trust Account increased by RM92.79 million, Chow noted. 'The state government concluded the 2024 financial year with a deficit totalling RM174.09 million, which is lower compared to the 2023 deficit of RM358.8 million,' he stated. Chow explained that while revenue collected in 2024 reached RM810.46 million, the deficit arose from operating expenditure of RM719.55 million and transfers to the Development Fund totalling RM265 million. 'The state received an advance of RM100 million from the federal government to cover cash flow, which, among other things, contributed to the increase in the Consolidated Trust Account,' he added. Responding to an additional question on strategies to increase revenue, Chow outlined nine approaches. These include selling more state land, collecting an estimated RM6 million in quit rent arrears, and reviewing land title conversion processes. Chow added that the state is also considering a review of liquor licence fees, entertainment duty, and hotel room fees. 'We are also looking at reducing our expenditure, but it keeps increasing each year due to salary realignments, which impacts emoluments,' he said, also noting that expenditure for the i-Sejahtera social welfare aid programme has risen as more people qualify. Chow clarified that billions in foreign investments do not directly translate into state revenue, except through land sales. 'The benefits from investments manifest as job opportunities and a trickle-down effect for local suppliers,' he explained, adding that investors and suppliers pay taxes directly to the federal government. 'These are our limitations; we do not have natural resources to generate more state revenue,' he said. Regarding the RM100 million advance from the federal government, Chow said the state applied for it as a standby fund in case of a deficit. 'The projected deficit of more than RM500 million (for 2024) did not materialise, as we managed to increase our revenue and lower the deficit to about RM100 million,' he said, referencing the RM1.047 billion budget for 2024 tabled in November 2023. He confirmed the RM100 million fund remains available, but must eventually be returned to the federal government.
New Straits Times
19-05-2025
- Business
- New Straits Times
Penang records RM65.27mil surplus, reflecting prudent fiscal management
GEORGE TOWN: Penang recorded a financial surplus of RM65.27 million as of March 31 this year, marking a positive turnaround in its fiscal position and reflecting prudent financial management efforts by the state administration. Chief Minister Chow Kon Yeow (DAP – Padang Kota) told the state legislative assembly sitting that the state's revenue stood at RM268.46 million, while total expenditure amounted to RM203.19 million. "The surplus reflects improved revenue collection and expenditure control, achieved in part through strategic planning and the implementation of new fiscal initiatives," he said during the question and answer session. He was asked about the state's coffers to date by Goh Choon Aik (PKR – Bukit Tambun). Elaborating, Chow said the state government ended the financial year 2024 with a current deficit of RM174.09 million, which is lower compared to the 2023 deficit of RM358.80 million. He said the deficit was due to the revenue collected totalling RM810.46 million, compared to operating expenditures of RM719.55 million and a transfer to the Development Fund of RM265.00 million. "The state government also received an advance of RM100 million from the Federal Government to help manage cash flow, which contributed to the increase in the Consolidated Trust Account," he added. As of April 30, the state government's Consolidated Fund amounted to RM1.53 billion, comprising the Consolidated Revenue Account of RM199.22 million and the Consolidated Trust Account of RM1.33 billion. The state government's financial statements for the year 2024 (unaudited) showed the Consolidated Fund stood at RM1.38 billion compared to RM1.46 billion in 2023, consisting of the Consolidated Revenue Account amounting to RM155.94 million and the Consolidated Trust Account amounting to RM1.22 billion. The Consolidated Revenue Account decreased by RM174.09 million compared to 2023, while the Consolidated Trust Account increased by RM92.79 million compared to 2023. Chow said the state government had taken the initiative to identify new revenue sources for this year. He said one was on reviewing rates, revenue collection procedures, and identifying issues related to arrears and revenue reduction for the state. The other was on direction and enhancement of revenue for administration and agencies under the state government, Chow said.
