Kelantan Faces Higher Deficit

KOTA BAHARU, Oct 18 (Bernama) -- The Kelantan government has presented a deficit budget of RM83.23 million next year, higher than a deficit of RM53.25 million the previous year.
State Economic Planning, Finance and the Welfare Committee chairman Datuk Husam Musa said although the revenue was expected to increase to RM430.27 million next year from RM410.89 million this year, the increase was not sufficient to cover the estimated expenditure, thus resulting in the deficit hike.
"The expected revenue next year is RM430.27 million while operating expenditure is estimated at RM513.50 million. Thus, deficit for the year 2012 is expected to be RM83.23 million.
"Although the 2012 Budget is a deficit budget, the state is expected to repeat the 2010 record where the actual deficit was far less than the deficit figure in the budget," he said when presenting the 2012 Budget with the theme "Well-being Correlate Blessing" at the State Assembly here today.
He said the budget was based on actual results with the state focusing on three main thrusts -- economic spin-offs, human development based on Islam and defending the weak and poor, needy, disabled, orphans, single mothers and elderly.
Husam said the estimated revenue of RM430.27 next year would be derived from taxes (RM88.49 million), non-tax revenue (RM196.24 million) and non-receipt revenue (RM145.54 million).
He said forestry would become the largest source of revenue at RM118.51 million or 27.54 per cent of the total revenue followed by land revenue (RM109.46 million or 25.44 per cent).
The Kelantan government budgeted expenditure totalled RM768.43 with operating and development components at RM513.49 million and RM254.94 million respectively, he said, adding that RM113 million of the development expenditure would be secured from loans.
Husam also announced that the state government would pay a half-month bonus with a minimum payment of RM500 for state civil servants in the December salary.
The sitting continues tomorrow.

tunku : when the federal government presented a deficit budget which is lower than last year the opposition made it a fuss but they themselves now presented a budget which is higher than last year put it in the way that the state is expected to repeat the 2010 record where the actual deficit was far less than the deficit figure in the budget. what a joke.