KUALA LUMPUR, Jan 22 — Pahang owes Putrajaya RM3.2 billion as at the end of 2018, the highest out of all states, the Finance Ministry said today in debunking the state Mentri Besar Datuk Seri Wan Rosdy Wan Ismail’s claim of a budget surplus.
The ministry added that the central peninsular state has also been in deficit for at least the past four years, and questioned Pahang’s ability for sustainable spending.
“Can the Pahang state government implement sustainable development with the highest debt in Malaysia at RM3.2 billion at the end of 2018, and annual budget deficit, with the accumulated deficit of RM228 million at the end of 2017?” its minister Lim Guan Eng asked in a statement.
Last week, Wan Rosdy rubbished Lim’s allegations that the state government cannot bring development to Cameron Highlands as it was saddled with debts, claiming it had tabled its budget for 2019 with a RM24.38 million surplus.
In a meet-and-greet session between Datuk Seri Najib Razak and Felda settlers, Wan Rosdy was reported saying the state government’s debt as “manageable” through a payment and management system which was allegedly agreed upon between the state and Putrajaya.
He also said that the state government can afford to give its civil servants bonus, same like Putrajaya.
Under the previous administration, then mentri besar Datuk Seri Adnan Yaakob has also repeatedly claimed that Pahang has tabled a surplus budget every year since 1992.
Lim revealed that the opposite was true, as the Auditor-General’s Report on the state government’s financial statements between 2014 and 2017 showed that its operating expenditures have consistently went over its revenue.
“The constant current deficit shows an irresponsible and unethical financial management,” Lim said.
Lim also revealed that Pahang’s debt to Putrajaya stands at RM3.178 billion, with arrears of RM1.27 billion.
