Perak tables budget for 2021 with largest deficit in state's history

The new Menteri Besar Datuk Saarani Mohamad said with a deficit of RM154 million, it was also the largest deficit in the state's history.

Saarani, who took his oath of office on Dec 10, said the budget allocates RM785.1 million as operating expenditure and RM430 million for development expenditure.

He said the budget is based on the projected development expenditure of RM1.215 billion and development revenue and receipts of RM1.061 billion, comprising tax revenue (RM598.7 million), non-tax revenue (RM248.4 million), non-revenue receipts (RM185.6 million) and development receipts (RM28.4 million).

"For 2021, RM430 million has been allocated for development expenditure, and RM785.1 million for operating expenditure, which includes emoluments (RM382.9 million), services and supplies (RM288.8 million), acquisition of assets (RM6.2 million), grants and fixed charges (RM100.2 million) and other expenses (RM7.1 million)," he said when tabling the budget at the State Assembly sitting here today.

Saarani said the budget focused on generating balanced economic growth, emphasising on social justice and ensuring the wellbeing of the people while effectively steering the sustainability of resources and environment, and driving the modernisation and digitalisation of institutions to provide the best and clean service delivery system nationwide.

He said the Perak government will also focus on the initiatives to improve public infrastructure, hence the allocation of RM290.4 million given to the Public Work Department (RM198.8 million), Drainage and Irrigation Department (RM113.3 million) and another RM2 million for preliminary work.

For housing, Saarani said RM26.7 million was allocated to the Perak Housing and Property Board for the development of Rancangan Perkampungan Tersusun (RPT) infrastructure, as well as affordable houses under the Rumah Perakku programme.

The Menteri Besar also announced that the state government would continue giving educational aid through an allocation of RM8.1 million that will benefit over 360,000 students from primary and secondary schools statewide, including missionary, vernacular and private Chinese schools.

Also allocated under the budget was RM0.8 million for Perak Children Education Fund (Taspen) to help the children from the households with a monthly income of RM5,000 and below; RM10 million for the physical development of mosques and surau; and another RM10 million for the development and repair of non-Muslim houses of worship.