Selangor’s Budget 2022 focuses on Covid-19 recovery, economic revitalisation

The state govt will work with the federal govt to develop a plan to deal with Covid-19, MB says 


SELANGOR’S Budget 2022 will see a deficit of RM293 million compared to last year’s budget, with a deficit of RM123 million as part of the state government’s effort to strengthen the economy post-pandemic. 

Selangor Mentri Besar (MB) Datuk Seri Amirudin Shari (picture) also said that the budget is also aimed to withstand future challenges, not only from the pandemic. 

The RM2.34 billion budget will see that up to RM1.22 billion allocation for administrative expenses was aimed at covering emoluments amounting to RM446.73 million, services and supply amounting to RM530.81 million, assets amounting to RM11.79 million, fixed payments of RM191.14 million and RM39.53 million for other expenses. 

“The service and supply expenses are the biggest component covering 43.51% of the state’s administrative expenses,” Amirudin said. 

The MB also said the state estimated that RM2.05 billion can be collected in taxes next year. 

In his speech, he highlighted that the pandemic has had a significant impact on the lives of Malaysians and that there are many challenges facing the country, including the need to over-come the economic crisis. 

He said the state government will continue to provide support to the people and businesses affected by the pandemic, and that the state government will strive to ensure that the people are able to return to normalcy as soon as possible. 

“We must not be complacent. Now we can see that the Covid-19 pandemic cannot be eradicated just like that and we are in the process of moving into an endemic phase, as I emphasised in this hall in August of this year,” Amirudin said in his Budget 2022 speech.

He added that the state government will work with the federal government to develop a plan to deal with Covid-19, specifically in terms of the economy and the people.

The MB said the state government will still maintains the momentum of the state’s strong financial position and remains resilient, complemented by comprehensive analyses and arrangements that must take into account the benefits of three main things: The people, the business community and state economic development.

To manage the budget effectively, the state government has implemented a periodic review of the budget, including the implementation of expenditure control initiatives. The state government also monitors the progress and performance of its departments, agencies and statutory bodies on a monthly basis. 

“This expenditure control instrument will be more inclusive and effective if each department also optimises human resources with the principles of doing more with less, work process automation and efficient financial management without compromising performance, productivity and quality of service delivery,” he said. 

“The state government has decided to establish a control instrument to control expenditure by limiting the rate of managing and development expenditure in 2021 per department to a maximum of 95% and 75% only. This proves that the state government is always ready when faced with economic uncertainty.” 

The theme of the budget, “Kita Selangor: State Withstanding Tests, Raising Human Dignity”, focuses on five key areas, namely, driving high-impact economic growth and improving delivery efficiency, developing a caring society and social wellbeing, strengthening Selangor’s public health agenda, ensuring a green environment and sustainable development, and optimising smart technology and digitalisation. 

Amirudin noted that the closure of the economic sector due to the Covid-19 situation has had significant implications and hampered the economic growth of the state. 

“Thus, the state government will give an exemption initiative of 100% to the development charge of RM500 for the construction of affordable homes. The facility will be implemented and expanded in 2022 to include the entire state of Selangor. 

“In addition, the 100-day land approval policy, which previously required the payment of a land premium deposit of 150% of the estimate, will be reduced to 100%,” he added. 

A total of RM15 million will be allocated for the Selangor International Business Summit 2022, with an allocation of RM6 million for high-tech industrial broadband. A total of 145 acres (58.68ha) of state government land and 86 acres of land owned by Selangor State Development Corp will be used to develop a workers’ housing complex. 

For the year 2022, Landasan Lumayan Sdn Bhd, through its associate company, Landasan Lumayan Berjaya Sdn Bhd, will launch the construction of 2,000 affordable housing units and 1,400 freehold housing units with an estimated gross development value of RM1 billion.