Ipoh council forecasts RM16mil deficit next year


The iconic Ipoh Railway Station - Filepix

Ipoh City Council is expecting a deficit of around RM16mil next year as it tables its 2021 Budget.

Ipoh Datuk Bandar Datuk Rumaizi Baharin said the council’s expected expenditure for next year was about RM236mil, while its forecasted revenue was RM220mil.

He said a bulk of the expenditure would be for the city council’s operating expenses at RM208mil.

“From the amount, RM98mil will be used for emoluments while RM99mil will be for services and supplies.

“RM1mil will be for purchase of assets, RM4mil for grants and fixed charges, while RM6mil will be for other expenses,” he said during the tabling of the budget at the city council headquarters.

“Our finances have been affected by the Covid-19 pandemic and the expected operating expenses is RM6mil higher than last year.

“Our past experiences in managing the budget by ensuring prudent spending, strengthening efficient work culture and reducing wastage have kept operating expenses to a reasonable amount,” he added.

Rumaizi said RM22mil would be allocated for the development of the city.

Of the amount, he said RM4.5mil would be spent on upgrading infrastructures such as disabled-friendly walkways, retention ponds and special bicycle lanes as well as installing street lights.

“The same amount will be used for cleaning and beautification works while RM4mil will be used to upgrade public markets, city council-owned flats, community halls and food courts or stalls.

“We will also use RM6mil to buy or maintain trucks and heavy machinery, buy lawn mowers,

special vehicles to catch wild animals and passenger boats to accommodate the increasing number of visitors to Gunung Lang Recreational Park,” he said.

“Other expenditures include allocations for our Low Carbon City and Smart City initiatives,” he added.

On the city council’s revenue, Rumaizi said the main contributor would be from taxes, which was RM150mil or 68%.

“The second largest contributor would be from non-tax revenue, which is RM52mil or 24% and non-revenue payments of RM18mil or 8%.

“We have planned to beef up our collection of parking fees, especially through the Park@Perak mobile app.

“We are also forecasting lower revenue due to the slow recovery of the economy,” he said.

The mayor said the city council would try to manage its finances wisely.

“We will adopt a ‘Best Value for Money’ principle.

“Money will be used wisely and productively to lessen wastage,” he added.

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