Mentri Besar Khalid Ibrahim is due to table the Selangor Budget for 2012 on Wednesday, and he has already hinted that it will likely be a balanced budget despite pressure to dole out 'goodies' ahead of snap general elections widely expected to be held early next year.However, Khalid can be relied on to unveil a slew of people-friendly measures directed towards affordable housing, senior citizens and its popular free water program.
"The trick is how to give out goodies without having to end up borrowing money, like the federal government has had to do. Generally, keeping a balanced or a slightly deficit budget is recommended given the uncertain economic times ahead. Things will surely get worse before they get better, so don't use all your bullets now," an economist at a bank-backed brokerage told Malaysia Chronicle.
Indeed, given the harsh criticism leveled at Prime Minister Najib Razak's RM232billion federal budget, Khalid can be expected to want to avoid the same mistake. Selangor financial adviser Anwar Ibrahim, a former Finance minister, will also play a moderating hand in the spending plan.
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