Selangor to be debt-free from govt by 2024 - MB

Selangor Menteri Besar Amirudin Shari is confident that the state through the state's Budget 2024 will achieve financial freedom from its debts with the federal government by next year.

During the first reading of the Selangor Budget 2024 in Shah Alam today, Amirudin announced that the Selangor Budget 2024 amounts to RM2.53 billion - with an estimated deficit amounting to RM330 million - lower than RM450 million recorded last year.

Of the total amount, RM1.33 billion (52.6 percent) has been allocated for operating expenses and RM1.2 billion (47.4 percent) for development expenses.

However, he noted that the state is set to collect revenue amounting to RM2.2 billion next year, which is a projection based on the previous track record of reaching a total of RM2 billion as of August 2023.

"Among the main contributors to the state's revenue in 2024 is the land premium amounting to RM890.94 million, which is equivalent to 40.5 percent of the total estimated revenue.

Additionally, the second largest contributor is land tax revenue, amounting to RM622.65 million, which is equivalent to 28.3 percent," he said.

Amirudin added that the third largest contributor will come from grants by the federal government, amounting to RM212.96 million which makes up 9.7 percent of the income for 2024.

Taking all that into consideration, Amirudin targets the state to fully repay its debt to the federal government, which mainly consist of loans from the Water Supply Project and the Amanah Saham Selangor (Asas) scheme.

"Based on the latest records, the state government's remaining debt with the federal government stands at RM19,207,475.78," he noted.

He explained that Selangor’s debt liability settlement commitment in 2024 is also low, which only involves the settlement of the final instalment balance of the Asas scheme amounting to RM1,893,379.47.

"The balance of the Water Supply Project loan amounting to RM17,314,096.31, which has clearly been stipulated in the global settlement agreement regarding the structuring of the Selangor water industry, will be transferred to Pengurusan Aset Air Bhd (PAAB) and only requires documentation by PAAB to be fully resolved," he said.

Debates of the Selangor Budget 2024 will start next Tuesday as the state assembly resumes for sitting.

Building unity

On another note, Amirudin also reminded the public that unity cannot be built upon pillars of falsehoods and betrayals.

Instead, he said true unity - which is seen as the way to progress in Selangor - must be based on truths and real faith.

“As Selangor MB, yes I want the Malays to unite (with others), but I also want the Malays to unite with all Malaysians.

“I wish to state that (while) Malays are the natives of this country, all Malaysians are equal,”

"It is this ambition for unity and progress that has been translated into Selangor Budget 2024. Unity must be founded on these ambitions and not based on sentiments or hate,” he added.

Under the theme 'Selangor Mandiri: Driving Progress, Sparking Unity', Amirudin’s three-hour speech elaborated on four main thrusts - quality investment catalyst to generate high income, raising Bestari education while ensuring a sustainable environment, as well as protecting the welfare of the people, and enhancing community unity.

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