Selangor allocates RM3b in Budget 2018

The highest allocation is for development expenditure, while the remaining 46.8% has been allocated for opex

By RAHIMI YUNUS / Pic By MUHD AMIN NAHARUL

Selangor Mentri Besar Datuk Seri Mohamed Azmin Ali has tabled the state’s 2018 budget of RM3.12 billion, 10% lower than the 2017 budget.

The highest allocation is for development expenditure with RM1.66 billion or 53.2% of the total budget, a 1% increase from last year, while the remaining RM1.46 billion or 46.8% has been allocated for operating expenditure (opex).

In his budget speech, Mohamed Azmin said the state’s revenue collection for 2018 is expected to hit RM2.25 billion, in which among the biggest contributors would come from land premium with 48.3%, land tax 23.3% and land-related business dealings 5.9%.

“The state budget this time is expected to experience a deficit amounting RM870 million due to substantive development allocation for sustainable development needs,” he said.

This, however, would be offset by RM432.4 million savings achieved from the state government’s cut-off system earnings assessment policy that was first introduced in 2015.

Of the RM1.46 billion opex, RM444.15 million would be spent on emolument s, RM557.79 million for services and supply, RM359.82 million for fixed payments and charges and RM98.24 million for assets procurements and others.

On the development front, among notable projects include the RM188 million Semenyih 2 water treatment plant, expected to be completed at the end of this year.

The state will also continue its free water programme next year with RM185.2 million in cost.

The state’s investment agency would get RM25 million for its investment mission next year. Selangor remains the state with the second highest manufacturing investment with 222 projects raking in a total of RM7.88 billion, or 22.7% of the total manufacturing investments, last year.

He further announced that General Electric (GE) International Inc via its local unit, GE Engine Services Malaysia Sdn Bhd, will invest RM200 million to set up a maintenance, repair and overhaul centre for leap engine in Subang, the first of such centre outside Cincinnati, US.

The budget also proposed to allocate RM26 million for the agriculture sector, which includes measures to reduce food imports.

To help alleviate the rising cost of living, Selangor introduces a form of financial aid worth RM2,400 a year or RM200 each month for eligible mothers, under the Kasih Ibu Smart Selangor, with less than RM2,000 household income.