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Targeted subsidies to get greater focus under 2025 state budget

15 Nov 2024, 4:00 AM
Targeted subsidies to get greater focus under 2025 state budget
Targeted subsidies to get greater focus under 2025 state budget

By Danial Dzulkifly

SHAH ALAM, Nov 15 — The state government plans to continue its targeted subsidy approach in the upcoming 2025 Selangor State Budget, prioritising precise aid delivery while maintaining fiscal responsibility, according to an aide to Menteri Besar Dato’ Seri Amirudin Shari.

Jay Jay Denis, Amirudin’s press secretary, said the current administration is focused on ensuring social welfare spending reaches intended recipients effectively while responsibly managing state finances.

This marks a departure from the previous state administrations’ approach, including under Datuk Seri Mohamed Azmin Ali’s helm, which implemented various blanket subsidy schemes.

“Since coming into office, the Menteri Besar has revised the previous approach of providing blanket welfare support. This broad approach is not only financially unsustainable but also less effective.

“With a targeted approach, we need a system capable of identifying and reaching the right people based on data,” he said during Selangor Journal’s Lunch on Us! talk show, yesterday.

https://www.youtube.com/live/WUpAHtyjS2I?feature=shared

The new data-driven approach, Jay Jay said, allows Selangor to distribute aid more precisely to those truly in need and monitor its impact closely.

“Our current system lets us track recipients and evaluate if our targeted programmes truly benefit them.

“This adaptability means we can make necessary adjustments to improve programme efficacy.”

Programmes such as Bantuan Kehidupan Sejahtera Selangor, or Bingkas, exemplify the government’s shift towards targeted welfare, using data to provide a nuanced understanding of residents’ needs based on location, income, and household demands.

Jay Jay said this approach considers more than just income, taking into account dependents and other factors affecting disposable income.

“For instance, a family with RM6,000 monthly income might still struggle if they have four children and elderly parents to support. Without both spouses working, such families may find themselves in the B40 or working-class category, especially in the Klang Valley,” he explained.

The budget will be tabled by Menteri Besar Dato’ Seri Amirudin Shari today during the Selangor State Legislative Assembly sitting.

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