GEORGE TOWN, Nov 14 — Penang Chief Minister Chow Kon Yeow today tabled a RM1.088 billion budget with a projected deficit of RM19.92 million.
He said the 2026 budget has a higher projected revenue of RM1.068 billion, an increase of 17.81 per cent or RM161.44 million, which led to a lower deficit despite a higher budget compared to 2025.
The size of the 2026 budget is 15.71 per cent or RM147.72 million higher compared to the 2025 budget of RM940.22 million.
This is the second year the state has announced a lower deficit compared to the previous year.
Chow said the 2026 deficit budget was the lowest in the state’s history after tabling the 15th consecutive deficit budget since 2011.
“The RM1.088 billion budget includes contributions to the state development fund totalling RM265 million to support the state’s commitment to development projects for 2026 amounting to RM318.62 million,” he said when tabling the Supply Bill at the state legislative assembly today.
In comparison, the estimated expenditure for development in 2026 is 44.83 per cent or RM98.62 million higher than in 2025, he said.
“The state is focused on high-impact projects including land acquisition for the Mutiara Line LRT project, Phase Two of Gurney Bay, development of Silicon Island and projects under the Penang Transport Master Plan,” he said.
Another 122 development projects in various categories, including public infrastructure, public amenities and special economic projects, were also listed under the 2026 budget.
“Among the projects are the expansion of the museum and art gallery, Penang Hill development, construction of hostels for the state sports council and construction of a new Shariah lower court in the northeast district,” he said.
Chow also said the state is continuing its i-Sejahtera programme with an estimated allocation of RM65 million for 2026.
“As at October 31, 2025, the state had spent RM53.57 million for i-Sejahtera to benefit 287,923 recipients,” he said.
He said the state targeted revenue collection of RM906.59 million for 2025, but as at November 14, total revenue collected had surpassed the target.
“The state government recorded revenue collection of RM920.15 million as at November 14, placing the state on the right track to increase the consolidated funds,” he said.
He said the state is optimistic that it will be able to achieve more than RM1 billion in revenue collection by year-end.
Later, he also announced a special cash aid of three-quarter month (0.75) or a minimum payment of RM1,000 to all 3,954 civil servants in the state.
He also announced a cash aid of RM300 each to Kafa teachers, religious school teachers, Tahfiz teachers and private Chinese school teachers and staff.
The total amount to be given out under the special cash aid is RM11.49 million and will be paid out in December.
