GEORGE TOWN, Nov 22 — Penang’s financial position is robust, the Auditor-General said today while commending the state government for providing accurate, well-maintained and updated accounting records for the year ended December 31, 2022.
In its 2022 report on Penang released today, it however noted that the state recorded an overall deficit of RM295.68 million last year, which had doubled from the amount in 2021.
"The state recorded a deficit of RM295.68 million, which is an increase of RM151.44 million (105 per cent) compared to the deficit of RM144.24 million in 2021,” the report said.
It said the state’s revenue collection in 2022 was recorded at RM595.06 million, which is a decrease of RM97.18 million (14 per cent).
In comparison, the state’s expenses increased to RM890.74 million in 2022 compared to RM836.48 million in 2021, which is a 6.5 per cent or RM54.26 million increase.
The report also noted that the accumulated balance of the state consolidated funds had dropped to RM1.859 billion compared to RM2.117 billion at the end of 2021, which is a drop of RM257.74 million (12.2 per cent).
The report recommended that the state disclose government investments appropriately along with ensuring compliance with accounting standards, among actions to be taken by the state to improve its financial performance.
It also recommended that the state diligently pursue revenue collection, manage the consolidated funds according to set objectives and conduct thorough testing during development stages.
