State Reserve Funds are only for Special Projects NOT for Administration Expenditures

SHAH ALAM, 19 Nov: The State Government will only use state reserves to fund special projects and not to shoulder administration costs, said Chief Minister Tan Sri Abdul Khalid Ibrahim.

Reserve funds also cannot be used to pay for management expenditures and other such expenses by the State Government because it reflects inefficient financial management.

The presentation of the budget’s deficit to cover administrative expenses also reflects the failure of efficient financial management and demonstrates the failure to control spending.

Abdul Khalid said this when explaining the State Government actions in using state reserve funds to finance four projects at a cost of RM500 million.

“The project we are doing is separate so that its (the reserve funds) usage is more transparent.”

“The people do not want the reserves to be used to cover administrative expenses.”

“If this happens, people will think that the government can spend extravagantly, so with the separation, we cannot spend extravagantly,” said Abdul Khalid in a press conference at the State Assembly Annex Building lobby.

Abdul Khalid presented the 2012 Budget today, the first day of the Third Meeting of the Fifth Session. The Budget is themed ‘Selangor, Leader of Malaysian Economy’.

When presenting the budget, Abdul Khalid announced the decision to build the third bridge in Klang costing RM300 million, the implementation of Storm Water (RM100 million), upgrading and repairs of drainage systems (RM50 million) and the building of fully-furnished affordable housing (RM50 million).

However, these projects are not included in the 2013 Budget, instead it will be using State reserves.

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