SHAH ALAM: The Pakatan Rakyat-led Selangor government yesterday tabled the largest budget since it took over the state in 2008 — a whopping RM2.42 billion, of which 46.81% or RM1.13 billion has been earmarked for development, the highest allocation since 2008.

Tabling Budget 2015 at the state assembly sitting yesterday, Menteri Besar Mohamed Azmin Ali proposed to allocate RM200,000 annually to all opposition representatives in the state, who were previously given nothing, as part of the state’s move to improve local representative services to the people through Program Mesra Rakyat (people-friendly programmes).

This comes with a proposal to raise the annual allocation for Pakatan representatives to RM700,000 from RM600,000, while state-appointed parliament coordinators will get RM100,000 annually.

 Of the RM1.13 billion allocated for development in 2015, Mohamed Azmin said RM277.3 million (24.5%) will be used for the state welfare programme called Merakyatkan Ekonomi Selangor, followed by RM106.6 million (9.4%) for social services, including rural development, urbanisation and entrepreneurship.

The development expenditure will also cover, among others, RM100.2 million for social development, including education, housing, youth empowerment and sports development, RM48.9 million for the state’s special development, RM44.7 million for land acquisition, RM33.8 million for general administration, and RM9.25 million for Malay customs, heritage and tourism.

“A total of RM1.29 billion or 53.19% of the budget will be allocated for management expenditure,” said Mohamed Azmin. This includes expenditure for services, supplies, emoluments and assets.

The state government tabled a budget totalling RM1.8 billion last year, with 34.7% or RM624.91 million earmarked for development.

The state has also projected that revenue for 2015 will increase 6.49% to RM1.97 billion from the RM1.85 billion forecast for 2014. This marks the state’s first deficit budget under the Pakatan government since 2008.

As at Nov 19, 2014, the state’s consolidated fund had expanded 13.78% to RM3.31 billion against RM2.91 billion last year, but the state government will not use reserves to balance the deficit budget.

On the budget being the first deficit one for Selangor under Pakatan, Mohamed Azmin said it was drafted according to the actual expenditure of the state to avoid having to table a Supplementary Supply Bill next year to enlarge the allocation.

“I choose to face it (our spending) honestly,” he said, adding that the state, under his predecessor Tan Sri Khalid Ibrahim, had actually been having deficit budgets since 2008 as Supplementary Supply Bills have been tabled yearly for additional funds.

“In contrast, I am focusing more on development by cutting down management expenditure. I believe it will spur the economic growth of the state and bring in more income,” he said, adding that he will not seek additional allocations, unless there are any “disasters”.

Mohamed Azmin said Selangor’s civil servants will get a 1½-month bonus this year. One month was paid in July and the remaining half month will be paid on Dec 18.

This article first appeared in The Edge Financial Daily, on November 25, 2014.