Thumbs up for good paymaster S’gor

By Teoh El Sen, FMT

PETALING JAYA: The Selangor state government has been lauded in the 2010 Auditor-General’s Report for its “very good” performance in decreasing public debts.

“Performance in payment of public debt in 2010 was very good because public debt dropped by RM58.91 million whereas loan repayment arrears were reduced by RM173.47 million,” said the report.

The report showed that in 2010, the Pakatan Rakyat-controlled state’s debt to the federal government had decreased by 5.5% (RM58.91 million) – from RM1,004.64 million (2010) compared to RM1,063.55million (2009).

The loan repayment arrears were reduced by 20.9% from RM829.86 million (2009) to RM656.39 million (2010).

Among others, this achievement was due to a repayment of loans on lost-cost houses (RM52.42 million), forest farming project (RM6.49 million), an exemption from interest rates for all outstanding loans on a water supply project and a write-off of all arrears on the same loan from the federal government.

“Consolidated state revenue recorded a surplus of RM124.24 million compared to the deficit of RM65.96 million in 2009,” the report stated.

Describing Selangor’s financial position as “satisfactory”, the report said the state’s consolidated funds increased by RM266.91 million (20.2%) to RM1,586.88 million (2010) compared to RM1,319.97 million in 2009.

However, the state’s revenue dropped by 10.9%, a decrease of RM192.36 million to RM1,571.50 million (2010) from RM1,763.86 million in the previous year.