Selangor tables Budget 2024 with lower deficit of RM330 million
SHAH ALAM - The Selangor government today tabled its Budget 2024 amounting to RM2.53 billion with an estimated deficit amounting to RM330 million, which is a reduction of RM120 million compared to 2023 (RM450 million).
When presenting the budget at the Selangor State Assembly today, Menteri Besar Datuk Seri Amirudin Shari said that of the amount, RM1.33 billion (52.6 per cent) was allocated for operating expenses and RM1.2 billion (47.4 per cent) for development expenses.
He said for the next year, the state government has estimated revenue that can be collected amounting to RM2.2 billion which is projected based on the previous track record, which is revenue amounting to RM2 billion as of August this year.
"Among the main contributors to the state's revenue in 2024 is the land premium which amounts to RM890.94 million equivalent to 40.5 per cent of the total estimated revenue and the second largest contributor is land tax revenue which amounts to RM622.65 million equivalent to 28.3 per cent," he said.
Amirudin said the third largest contributor is from the federal government grant, amounting to RM212.96 million, equivalent to 9.7 per cent of income for the next year.
He said that despite implementing a deficit budget for the past six budgets, the state government will take steps to reduce the total deficit to a reasonable amount through expenditure control instruments and the practice of good financial governance principles without affecting the output and impact of expenditure.
Amirudin said the estimated operating expenditure of RM1.33 billion includes expenditure for emoluments, services and supplies, assets, grants and fixed payment obligations and other expenses.
While the 2024 development expenditure of RM1.2 billion will focus on the social sector amounting to RM359.17 million as preparation after taking into account the challenges to be faced including expected economic instability from the Middle East crisis, he said.
The preparation includes improving the social protection system that includes welfare, education and economic strengthening of the target groups, and food security as the core of the people's well-being.
In addition, he said, the infrastructure sector was allocated RM357.10 million from the entire proposed allocation which was higher than the infrastructure allocation approved in 2023 to ensure that the infrastructure in Selangor would continue to be improved.
He added that RM296.13 million was allocated for economic development purposes while the rest of RM187.6 million was proposed for health, education and rural development.
He said that with the theme 'Selangor Mandiri: Driving Progress, Sparking Unity', the budget will be driven through four main thrusts which are Quality investment catalyst, generating high income; Raising Bestari education, ensuring a sustainable environment; Protecting the welfare of the people and enhancing community unity.
Amirudin said 2024 is considered to be a lucky year for the Selangor government because it has excellent financial freedom and the state government is expected to fully repay the debt with the federal government next year.
"Based on the latest records, the state government's remaining debt with the federal government is as much as RM19,207,475.78 which consists of loans from the Water Supply Project and the Amanah Saham Selangor (ASAS) scheme.
Amirudin explained that the state government's debt liability settlement commitment in 2024 is also low which only involves the settlement of the final installment 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 matters action by PAAB to be fully resolved," he said.
He said that with the advantage of financial freedom, the Selangor government succeeded in proving the best governance in managing financial resources without affecting the agility of services in improving the standard of living of the people of the state through the state’s Budget 2024. - BERNAMA