Penang Chief Minister Lim Guan Eng has clarified that although the state announced a deficit budget, it usually records a surplus at the year-end.

"Although we always announce a deficit budget, we usually end up with a surplus every year," Lim said when met at Balik Pulau today.

"Everyone knows we have a surplus, and we are proud of it," he said.

"We may table a deficit budget but through the year we may be able to save money through good governance and no corruption policy like the open tender system," he added.

penang third bridge project signing 061013 lim guan eng Lim (l eft ) said the public would understand that the deficit budget is only an estimation and not actual expenditure.

He also said that budget also has yet to include the state's revenue for the year.

Yesterday, Lim tabled a deficit budget of RM255.44 million, less than that in 2013, which was RM262.04 million.

 Clearing air on incompete news

He clarified the matter as his members who were not from Penang had asked him about it after reading newspaper reports which did not include his remark about the surplus.

He explained that this is owing to the estimated operating expenditure of RM843.20 million for 2014.

He said added that it was a result of the reduction in the transfer of funds to the State Development Financial Fund of RM120 million compared with RM200 million for 2013.

Lim also said that the allocations for the state's social aid and people's well-being programmes have been raised from RM75.0 million in 2013 to RM111.47 million for 2014.