ISKANDAR PUTERI, Nov 26 — Johor Mentri Besar Datuk Hasni Mohammad today presented a deficit budget for next year at RM248.14 million.
He said for next year, the state’s projected revenue is RM1.61 billion but its expenditure is expected to be RM1.86 billion.
“This scenario shows that the Johor Budget 2021 is a deficit budget, which stands at RM248.14 million,” he said in his Johor Budget 2021 speech at the state assembly in Kota Iskandar here.
He said operating expenditure is RM997.21 million and includes contributions to the development fund.
Hasni said the Johor government is expected to spend RM850 million of its development fund to implement 12 key agenda.
He said RM513.69 million is for emoluments and RM483.51 million for other expenses.
“In the current economic situation we have to spend more than usual according to the existing resources and our focus,” he said.
Hasni said Johor has two financial strategies for next year towards its economic growth, and will be using all the state resources for this, including the local authorities and state-linked companies (GLCs).
“The local authorities will allocate RM562 million for the implementation of development, welfare and addressing Covid-19 initiatives.
“The state government through the GLCs will also assist in the success of development initiatives in Johor,” he said.
Hasni said the second financial strategy is based on the concept of “counter-cyclical measures”.
“The state government will postpone fiscal consolidation efforts in the future, until the state's economy expands again,” he said.
