For the second year in a row, the Penang state government was recognised for continued improvement in its financial position. Overall, the state government has managed to consistently retain a healthy financial position in the management of state agencies as well as in the execution of development projects under the Ninth Malaysia Plan (2006–2010). Can the positives be sustained over the next few years?
The ins and outs
A state’s financial statement is divided into three parts – consolidated revenue fund, consolidated trust fund and consolidated loan fund. The sum of these three categories is called consolidated funds; by studying this, one can measure and monitor the state’s financial position.
The consolidated revenue fund captures the accumulated surpluses made through the collection of revenue and operating expenses over the years, while the consolidated trust fund accounts for accumulated surpluses of all the receipts and payments of the government trust fund which include public trust fund, development fund, various government trust funds (low cost houses, scholarships, His Excellency the Governor, etc.) and cash deposits.
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