Selangor's RM2.34bil 2022 state budget to see larger deficit than 2021, says MB

SHAH ALAM: Selangor Mentri Besar Datuk Seri Amirudin Shari has tabled the 2022 state budget, which has a larger deficit than the 2021 budget.

This year’s RM2.34bil budget would have a deficit of RM293mil as opposed to the 2021 budget, which had a deficit of RM123mil.

When delivering the budget speech, Amirudin said the deficit was based on the state’s projected income of RM2.1bil and estimated expenses of RM2.32bil.

Out of the RM2.34bil, 52%, or RM1.22bil, will go towards administrative expenses whilst the balance of RM1.12bil will be spent on development.

“This deficit is higher when compared to 2021 because of preparations to provide a substantive development allocation to strengthen the state’s economic drive post-Covid-19 pandemic and at the same time, build a state that can withstand challenges from various aspects," the Mentri Besar said.

According to Amirudin, the estimated RM1.22bil administrative expenses was aimed at covering emoluments amounting to RM446.73mil, services and supply amounting to RM530.81mil, assets amounting to RM11.79mil, fixed payments of RM191.14mil and RM39.53mil for other expenses.

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

The Mentri Besar also said the state estimated that RM2.05bil can be collected in taxes in 2022.

Amirudin’s 2022 budget also came with five core thrusts which are:

- Spurring high impact economic growth and increasing delivery efficiency;

- Developing a caring society and social well-being;

- Strengthening Selangor’s public health agenda;

- To create a green environment and sustainable development; and

- To optimise smart technology and digitalisation.

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