Selangor’s budget for 2015, presented by Menteri Besar Azmin Ali today, is its largest ever but comes with its first deficit, since Pakatan Rakyat took over the state in 2008.

 

The estimated state expenses for 2015 is expected to be RM2.42 billion, mainly to implement development plans and programmes relating to public welfare.

The previous budget under former MB Khalid Ibrahim was only RM1.85 billion.

 

“Collection for 2015 is expected to increase by 6.49 percent to RM1.97 billion from the RM1.85 billion collected in 2014," said Azmin.

He added the budget was based on the stable and strong financial standing of the state.

Azmin added that from the total expenses estimated, RM1.29 billion (53.19 percent) would be allocated for management expenses and RM1.13 billion would go towards development expenses.

In 2014, management expenses for the state was RM1.225 billion (66.2 percent) whereas RM625 million was used for development expenses. 

Under the management expenses, RM385 million is allocated for emoluments and RM443.5 million for supply and services.

Azmin announced today that RM17.6 million is allocated for purchase of assets, RM426.5 million for fixed payment and RM16 million for other expenses.

Under the development expenses, Azmin said that RM277.3 million is allocated for Merakyatkan Ekonomi Selangor (MES) programmes and RM106.6 million for community services, rural development, the urban sector and entrepreneurial development.

Also under development expenses, RM636.9 is the estimation for the menteri besar office’s expenses and the state secretary.

Meanwhile, in a press conference later, Azmin said the budget tabled had successfully reduced the management expenses and increased the development expenses.

He said it was a “brave and drastic” action in order to receive rewards through development activities in Selangor.

“It is a brave and drastic action to reduce management expenses to 53 percent.

“By increasing development expenses, I am confident that this will have a multiplier effect in terms of development activities in Selangor.

“That’s why I am confident that the outcome will be more than what we have estimated. This will finance the budget deficit which I have announced earlier,” he said.

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