By Ida Nadirah Ibrahim
SHAH ALAM, Nov 10 — Dato’ Seri Amirudin Shari has announced a total of RM2.53 billion in allocations for the 2024 Selangor Budget.
Themed ‘Independent Selangor: Driving Progress, Fostering Unity’, reflecting the idea of Selangor as a self-sufficient and progressive state which fosters unity among its people, the Menteri Besar said the funds will be channelled to the state budget’s outlined four core focuses.
The key areas include driving quality investments and generating high income; promoting smart education and ensuring a sustainable environment; safeguarding the welfare of the people, and fostering unity of the ‘ummah’.
During the tabling of the state budget at the Selangor State Legislative Assembly today, Amirudin said 52.6 per cent of the budget, or RM1.33 billion, has been set aside for operating expenditure, while the remaining 47.4 per cent, or RM1.2 billion, will be used for development expenditure.
Of the total sum allocated for operational expenditure, RM480.24 million will be set aside for emoluments, RM601.57 million for services and supplies, asset purchases (RM22.9 million), grants and fixed payments (RM210.56 million), and miscellaneous expenses (RM14.71 million).
As for development expenditure, RM359.17 million (29.9 per cent) will be allotted for the social sector, RM357.10 million for infrastructure, RM296.13 million for economic development, and RM187.6 million for health, education, and rural development.
2024’s estimated revenue is RM2.2 billion, of which RM890.94 million or 40.5 per cent will be from land premium, RM622.65 million (28.3 per cent) from property tax, and RM212.96 million (9.7 per cent) from the Federal government’s allocation.
“The figure is projected based on the previous track record, where a total of RM2 billion was successfully collected in August 2022 and September 2023,” Amirudin said.
Amirudin said the 2024 Selangor Budget sees a RM330 million estimated deficit this time, RM120 million less than the RM450 million deficit in last year’s budget.
“Although we have seen deficit budgets for the previous six budgets, the state government will take measures to reduce the deficit to a reasonable level through expenditure control mechanisms and good financial governance practises without compromising spending output and impact,” he said.
As for the state’s financial position, Amirudin said Selangor’s reserve via the state government’s Consolidated Fund, as of December 31, 2022, recorded RM3.082 billion.
“For 2023, as of November 9, the aggregate amount accumulated in the state’s Consolidated Fund remains robust and stable, recording an increase of RM631.48 million to reach RM3.713 billion, comprising of some RM1.5 billion in the Consolidated Revenue Account and Consolidated Trust Account, totalling RM2.213 billion.
“Due to effective and prudent spending approaches and strategies, the financial performance of the state government until November 9 recorded a RM427.25 million financial surplus,” he said.
Selangor’s revenue collection for 2023 stood at RM2.405 billion or 120 per cent of the expected RM2 billion figure.
Out of the amount, almost 85.97 per cent, or RM1.113 billion, was spent on operational expenditure, whereas infrastructure development spending has reached 72.05 per cent or RM864.56 million.
“Based on the state government’s performance and financial position, we are optimistic that we can reduce the projected 2023 deficit from RM495 million to a lower figure, which the reserves currently held by the state government can accommodate,” Amirudin said.
The total state revenue in 2022 was RM2.533 billion, with RM722.50 million from recorded tax revenue, RM1.543.18 billion from non-tax revenue, and RM268.15 million from non-revenue receipts.