SHAH ALAM, Nov 14 — Dato’ Seri Amirudin Shari has announced a RM3.23 billion allocation for the 2026 Selangor Budget, themed ‘Selangor Champions, People Prosper’ (Selangor Juara, Rakyat Sejahtera).
The Menteri Besar said the budget is tabled ahead of the Second Selangor Plan (RS-1), which is expected to be unveiled in the State Legislative Assembly in mid-2026.
Developed to reflect the needs of age groups, religions, and socioeconomic levels, it was based on Selangor’s current financial position and projections for the Consolidated Fund.
“A deficit-based budget approach is a fiscal strategy that allows expenditure to exceed projected revenue for a given financial year.
“While facing a challenging economic landscape, the state government has maintained its financial momentum and remains resilient, supported by indicator analysis and comprehensive assessments as part of its preparations for the anticipated economic slowdown in 2026,” he said during the tabling in the Assembly today.
Amirudin added that the budget comprises six pillars: state revenue sources and economic opportunities for the people; administrative reforms to dignify the people; shaping education to define the future; advancing arts and culture and empowering youths; Selangor as a caring state; and environmental sustainability and infrastructure excellence.
Approximately 57.6 per cent of the allocations, or RM1.86 billion, has been set aside for operating expenditures, with 42.4 per cent, or RM1.37 billion, for development expenditures.
Of the total sum allocated for operational expenditure, RM651.28 million will be set aside for emoluments, RM739.7 million for services and supplies, asset purchases (RM22.48 million), grants and fixed payments (RM426.75 million), and miscellaneous expenses (RM19.79 million).
As for development expenditure, which amounted to RM70 million, a 5.4 per cent increase compared to the 2025 Selangor Budget, he said the social sector will be prioritised over infrastructure, with RM360 million, or 30 per cent, allocated to it.
“The increase in allocation for the social sector is in preparation for anticipated challenges in the coming year, including the expected global economic downturn.
“This shift aims to strengthen the social protection system, which includes welfare, education, and economic empowerment of targeted groups, as a foundation for public well-being,” Amirudin said.
Taking into account the state government’s expected revenue of RM2.8 billion for the year 2026, and an estimated expenditure of RM3.23 billion, the Menteri Besar said the upcoming budget records a projected deficit of RM430 million.
“The state government has consistently succeeded in reasonably reducing the deficit through expenditure control measures and sound financial governance practices.
“The projected RM430 million deficit for the 2026 budget will be fully financed through the balance of the Consolidated Fund,” he said.
Amirudin noted that the major contribution to Selangor’s revenue the following year would come from land premiums, totalling RM1.02 billion (36.3 per cent), followed by RM691.27 million (24.7 per cent) from property tax, and RM263.16 million (9.4 per cent) from the Federal government’s allocation.
