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Selangor unveils RM3.23bil Budget 2026 to tackle social challenges and economic uncertainties

The budget focuses on enhancing social protection and preparing for a potential global economic slowdown, with a projected deficit of RM430mil

7:15 PM MYT

 

KUALA LUMPUR – The Selangor government has presented its Budget for 2026, amounting to RM3.23 billion.

Menteri Besar Datuk Seri Amirudin Shari revealed that RM1.86 billion (57.6%) is earmarked for operating expenditure (opex), while RM1.37 billion (42.4%) is allocated for development projects, Bernama reported.

Notably, the service and supply expenses make up the largest portion of the opex at RM1.86 billion, accounting for 39.8%. These funds will help implement phase two of the Public Service Remuneration System (SSPA) and accommodate higher contract values, in line with the RM1,700 minimum wage for cleaning, security guard, and maintenance services across 26 departments.

Amirudin, who is also the Sungai Tua assemblyman, noted that the proposed development expenditure has increased by RM70 million (5.4%) compared to 2025, with a significant focus on the social sector. The sector’s allocation, amounting to RM360 million (30%), aims to bolster social protection systems in response to potential global economic challenges in the coming year.

“The increase will support welfare, education, and strengthen the economic position of targeted groups, contributing to the overall well-being of the people,” he said.

For 2026, the state government anticipates revenue of RM2.8 billion, with land premiums as the major contributor, estimated at RM1.02 billion (36.3%). Land tax revenue is expected to bring in RM691.27 million (24.7%), while federal grants will contribute RM263.16 million (9.4%).

With projected revenue of RM2.8 billion and an estimated expenditure of RM3.23 billion, the 2026 Budget will result in a projected deficit of RM430 million, Amirudin said. – November 14, 2025

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