Selangor Menteri Besar Azmin Ali has tabled a RM3.45 billion state budget in 2017 that reflects a 20 percent hike from the RM2.88 billion allocated for this year.

This will the the largest state budget with an increment of RM570 million compared with Budget 2016.

It is also the third consecutive deficit budget tabled by Azmin. The state government is expected to record a RM900 deficit next year.

He acknowledged that Selangor has adopted an honest attitude by presenting the budget with RM900 million deficit.

A total of RM1.65 billion or 47.8 percent of the budget is allocated for operating expenditure.

Meanwhile, RM1.8 billion or 52 percent of the budget will be allocated for development expenditure. This is a 25 percent increase or RM360 million compared to Budget 2016.

In Budget 2016, an equal 50:50 or RM1.44 billion was allocated for development and operational expenditures respectively.

At his budget speech, Azmin claimed this is the biggest development expenditure allocated in Selangor .

During his budget announcement, Azmin teased Putrajaya for only allocating a considerably small portion of development expenditure, which caused concern of imbalance expenditure of federal expenses for next year.

"The federal budget which was tabled by the prime minister (Najib Razak) appeared to be irresponsible as it only allocated 18 percent of (budget) for development fund," he said.

To develop Selangor, he said, the state government will increase the development expenditure by 25 percent.

Notably, Azmin also said the state has recorded a surplus of RM351.38 million despite it had officially forecasted a RM630 million deficit when he first tabled Budget 2016 in Oct 2015.

This, he attributed to the successful collection (96.9 percent) for the state revenue.

The state has spent 60 percent of its development expenditure and 77.1 percent of its operating expenditure allocated in Budget 2016, according to Azmin.

"As of Oct 14, we have recorded a total of RM3.62 billion in reserves," he added.

Azmin emphasised that the state budget had taken into consideration the goods and services tax (GST) which has burdened the people.

He said he state's economic growth is expected to maintain between 5 percent and 5.5 percent.

Azmin said some corrupted and anti-harmonious groups were jealous of Selangor for its success. 

"They slander and libel as well as twist the facts. We will fight back," he said.

"We will fight with any propaganda which is meant to dilute the rakyat's power and reject democracy. We are close to Bersih as Bersih's characteristics are commendable," he said before ending his two-hour speech.

Here are the key pointers of Selangor Budget 2017:

Total budget: RM3.45 billion; RM1.8 billion or 52 percent allocated for development expenditure and RM1.65 billion or 47.8 percent for operating expenditure.

Estimated revenue in 2017: RM2.55 billion, up 13.3 percent.

Deficit: RM900 million

Operating Expenditure:

  • Emolument expenditure: RM427.9 million, increased due to rationalisation measures in public service scheme involving an allocation of RM20.3 million.
     
  • Service and supply: RM 543.16 million; Asset procurement: RM18.34 million.
     
  • Maintanance of embankments of coastal zones and rivers: RM10 million.

Development Expenditure:

  • RM1.09 billion for infrastructures, among others, for the construction of roads, drainage system maintanance and water supply projects.
     
  • RM250.26 million for economic development, namely construction of low-cost housing projects, investment and rural planning, etc.
     
  • RM247.15 million for social, economic and welfare programmes.
     
  • RM183.2 million for free water supply.