Johor tables deficit budget for 2021

By , in Local Politics on .

ISKANDAR PUTERI, Nov 26 – The Johor government today tabled a deficit budget of RM284.14 million for 2021 after 10 consecutive years of surplus.

Menteri Besar Datuk Hasni Mohammad said the state’s estimated revenue would be RM1.609 billion against projected expenditure of RM1.857 billion next year.

“The state government is expected to spend RM850 million through the Consolidated Development Fund to implement the 12 Key Agenda of Budget 2021.

“Yes, this budget is a deficit budget. In the current economic situation, we have to spend more than usual, derived from existing sources and being more focus,” he said when presenting the state’s Budget 2021 themed ‘Resilient the Path to Prosperity’ at the third meeting of the 14th Johor State Assembly here today.

deficit budget

The budget was the first tabled by Hasni under the Perikatan Nasional government since taking over the administration from Pakatan Harapan on Feb 28.

Hasni said for operating expenses, which included contributions to the Consolidated Development Fund amounting to RM997.21 million, a total of RM513.69 million will be spent for emoluments and RM483.51 million for other expenses.

He laid out two financial strategies for Budget 2021, namely optimising all resources available to the state government through local authorities and state-linked companies (GLCs).

“Local authorities will allocate RM562 million for the implementation of development, welfare and COVID-19 eradication initiatives.

“The state government through (GLCs) also helps in the success of Johor’s development initiatives,” he said, adding that the second strategy was based on the concept of counter-cyclical measures.

“The state government will postpone fiscal consolidation efforts until Johor’s economy expands again,” he added.

BERNAMA

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