Khir Toyo said Selangor is going to bankrupt

He said he doubted that the RM1.4 billion state budget that Khalid unveiled yesterday would help the state avoid a high deficit.

He recalled that Khalid had to seek supplementary budgets amounting to RM578.4 million last year, making the total 2010 Budget RM1.97 billion instead of the RM1.4 billion originally tabled in the State Legislative Assembly.

“The menteri besar has proudly announced that this year’s budget is a balanced budget, but Selangor has been plagued with budget deficits for two consecutive years,” Khir said during the state assembly debate on the budget.

He said Selangor under his administration recorded a surplus of RM72.51 million in 2006 and increased this to RM131.88 million in 2007.

“But in 2008, when Pakatan Rakyat took over the state government, the surplus was reduced to only RM49.1 million,” he said, adding that the state accounts showed a deficit of RM65.96 million in 2009.

However, he admitted that the 2011 Budget would be “realistic” as long as Khalid refrained from applying for a supplementary budget.

“Last year, it showed a deficit of RM65.98 million. In 2010, it is expected to be RM144 million and maybe more.

“What will happen in 2011? I am troubled that Selangor may be bankrupt by the next general election in 2013 due to imprudence.”

Khalid retorted that Khir had “probably not studied accounts and budgeting".

He said the budget would be reviewed periodically to prevent under-budgeting and over-budgeting.

“So there is no such thing as a budget being exact in expenditure and returns,” he said.

The menteri besar also said Selangor had achieved a surplus of RM268.18 million, the highest recorded in five years.

He suggested that Khir “do some research” on BN-led states to determine if they had balanced budgets.

“If he is worried that the state faces bankruptcy, he should alert the prime minister because he is in charge of bankruptcies,” he said.