SELANGOR TABLES DEFICIT BUDGET
This is fourth time since PKR won state in 2008
SELANGOR has tabled another deficit budget, the fourth since PKR took over the state in 2008. Menteri Besar Datuk Seri Azmin Ali tabled a RM3.12 billion budget for next year on the back of a RM2.25 billion revenue, which saw a RM300 million reduction compared with the earnings forecast for the state this year.
In a press conference after the adjournment of the state assembly, Azmin blamed “the slow economy in the past few years” for the reduction in forecast revenue from land premium, quit rent and landrelated business charges.
“This is a responsible projection. We can’t deny that the economic activities today is slower compared with the past few years.
“However, the savings, as I mentioned earlier, allows us to fund development projects that we have planned.
“Although the amount of expenditure is reduced compared with this year, it doesn’t mean we will neglect infrastructure development for the rakyat,” he said, referring to the state government’s “cutoff” procurement policy, which allowed it to save up to RM432 million since it was implemented in 2015.
On the state’s high dependency on land revenues and apparent increase in the percentage of forecast for quit rent and land-related business charges contributions next year, Azmin said tax and premium-based income from land were the main source of revenue for any state.
He said this was because there was no system that allowed a state government to collect taxes other than through quit rent and self assessment.
He said the state government was expecting a higher revenue from the implementation of parcel rent.
The law for it was passed in Parliament recently.
On why there was no announcement on the forecast for industrial investment revenue for next year, despite mentioning the state’s collection of RM7.8 billion last year and its forecast of RM6.5 billion for this year, Azmin said: “I have mentioned that we have a potential investment of about RM404 million.
“Once we finalise that, we should know the actual quantum of the activity. I can’t announce (anything on the matter) before we finalise (the deals).”
At the tabling of the state budget, Azmin announced goodies for the rakyat, including the RM2,400 annual assistance to buy groceries for 30,000 mothers in the state under a new initiative called Kasih Ibu Smart Selangor (Kiss), involving an allocation of RM72 million.
Meanwhile, Selangor Barisan Nasional (BN) assemblymen said the budget was devoid of any new initiative to drive the state’s economic growth.
Selangor BN deputy chairman Datuk Mat Nadzari Ahmad Dahlan said the budget was “cosmetic”.
“There is nothing new in this budget.
“This is a ‘cosmetic’ budget for the people by Pakatan Harapan to win the 14th General Election. It is like a poor university dissertation whose content was merely repeating its old achievements.
“No efforts were made by the state government to improve the state’s gross domestic product, which had been static since the opposition took over in 2008.
“There is also no new proposals to open up areas that could encourage economic activities to drive the state’s growth and provide jobs.”
He cited an example where the PKR-led state government had “hijacked” a plan by the Federal Government several years ago to build homes for second-generation Felda settlers in Hulu Bernam.
Nadzari said in 2011, the state government, through its Economic Action Council, had rejected the proposal to build the housing scheme in Sungai Tengi Selatan due to land issues.
“But Selangor, today, announced that it will be constructing the homes at the same location at a cost of RM97,000 each.
“So, they ‘hijacked’ the Federal Government’s idea and made it theirs.
“It is clear that the plan is to fish for votes in the next general election,” said Nadzari.