The Selangor government today tabled its 2011 budget, with RM1.43 billion set aside under the theme Hasil Negeri Untuk Rakyat (state revenue for the people).

Menteri Be NONE sar Khalid Ibrahim announced at the state assembly today that next year’s budget will include RM830 million for management costs, while RM600 million has been set aside for development.

The total is 10 percent higher than the 2010 budget, which stood at around RM1.3 billion.

The breakdown for next year’s RM830 million management expenditure will include RM282 million for emoluments; RM333 million for services and supply; RM5.7 million for purchase of assets; RM208.5 million for fixed payments and handouts; and RM800,000 for other payments.

The RM600 million development budget will include RM107.877 million for the economic sector; RM88,883,040 for the social sector; RM395.6 million for infrastructure development; and RM8.608 million for the urban sector.

Khalid explained that, under the budget theme, the state government will stick to four strategies - smart management of state resources, efficient cost management, encouraging human resource development and improving development.

He said the state government expects to see an increase in revenue, particularly from tax collection in 2011.

He said it is targeting a 15.47 percent or RM70,960,000 increase in tax revenue, pushing up the projected tax revenue to RM530,980,000 compared to RM460,020,000 this year.

The state government is also targeting a 10.52 percent increase in non-tax revenue, with its income in this sector expected to be bumped up to RM467,164,360, compared to RM422,679,000 this year.

A smaller increase is projected from non-revenue income, by about 3.49 percent, pushing the figure up from RM417,301,000 this year to RM431,855,640 in 2011.

Higher GDP rate in store

The state’s increase in revenue follows reasonably healthy growth in Selangor’s gross domestic product (GDP), which is expected to hit at around 6.1 percent for 2010 after it plummeted to 1.2 percent in 2009.

Leading in contributions to the GDP is the services sector (60.5 percent), followed by manufacturing (32.4 percent), construction (5.5 percent), agriculture (1.5 percent) and mining and quarries (0.1 percent).

NONE In his budget speech, Khalid hit out at corruption and leakages that have lead to billions of ringgit being wasted by previous leaders, based on decisions that favoured self-interest and political linkages that benefitted only a few.

Citing the 'Malaysian Maverick' written by Barry Wain, Khalid said Malaysians were stunned by the expose that RM100 billion had been spent on a whim during former premier Dr Mahathir Mohamad’s 22-year tenure.

“He (Wain) also stated that had it not been for such wastage, the money could have been used for socio-economic development of Malaysians... this corruption and misappropriation at the highest level has stunted the nation’s economic development,” said Khalid.