[UPDATED] Bracing for bumpy ride, Selangor allocates RM2.45 bil in 2023 budget

SHAH ALAM – The Selangor government has allocated RM2.45 billion in anticipation of a global economic slowdown and disasters next year. The amount consists of RM1.25 billion or 51% for operating expenditure and RM1.2 billion or 49% for development.

In the budget tabling today at the Selangor Assembly, Menteri Besar Datuk Seri Amirudin Shari said it took into account the state’s expected revenue for next year amounting up to RM2 billion compared to the estimated expenditure for 2022 amounting to RM2.05 billion. 

Even though the deficit is higher than this year due to disaster management preparations in view of climate change, as well as substantive allocations to meet the sustainable development needs of the state, Amirudin is convinced that the state’s finances would be able to sustain it.

“There have been deficits in the past five budgets and the state government has always succeeded in reducing the total deficit to a reasonable amount via expenditure control instruments and good financial governance practice and principles,” he said.

He cited state revenue of RM2.3 billion recorded up to yesterday, from which 87.25% or RM1.22 billion was used for operating expenses while as much as 72.7% or RM816 million for development expenses.

Amirudin anticipated that revenue from land premiums would amount to RM753 million or 38% out of total contributions to the state coffers next year.

Presenting the 2023 budget with the theme “#KitaSelangor: Soaring Progress, Strengthening Unity, Pursuing Hope” the menteri besar stated that the estimated operating expenses were emoluments amounting to RM449.737 million, services and supplies (RM561.7 million), assets (RM12.6 million), and grants and fixed payments (RM185.9 million).

Amirudin said that service and supply expenditure was the largest component accounting for 44.9% of the state government’s operating expenditure.

“The second largest contributor is revenue from land tax worth RM570.51 million or equivalent to 29%, while the third largest contributor is from federal government grants worth RM214.81 million or equivalent to 11%,” he said.

On disaster management, Amirudin said that the Selangor Irrigation and Drainage Department has been allocated RM68 million for flood mitigation projects.

“Several river basins that include Sg Klang are given an allocation of RM6.255 million, the Sg Langat basin (gets) RM5.67 million, and the Sg Selangor basin with an allocation of RM1.52 million.

“These flood mitigation projects need to be implemented immediately, especially in the Sg Klang and Sg Langat basins. The state government has also allocated as much as RM2.9 million for the implementation of post-flood works involving repairing banks and embankment works that include cleaning and maintenance,” he added.

In addition, he said, RM800,000 is also being allocated for environmental conservation and awareness programmes.

“For river and beach conservation, the state government will allocate a total of RM400,000,and RM300,000 for the climate change study and policy, which includes integrated implementation in line with existing policies including the First Selangor Plan,” he explained. – The Vibes, November 25, 2022