By Danial Dzulkifly
SHAH ALAM, July 23 — Selangor was tied for first place in the Malaysia Open Budget Index (MyOBI) 2024, which offers a comprehensive transparency analysis of state budgets nationwide.
The second edition of the index, produced by the Institute for Democracy and Economic Affairs (Ideas), critically evaluates the accessibility and timeliness of key budget documents, the oversight role of state legislative assemblies, and opportunities for public participation in the budget process.
In the report published today, Selangor scored 76 out of 100 for public availability of budgetary documents and 67 for oversight, tied with Terengganu.
In the first edition of MyOBI published in 2022, Selangor was ranked second, scoring 84 for transparency, behind Terengganu’s 85.
MyOBI’s evaluation measures the availability and quality of key budget documents, including the executive budget proposal (EBP), enacted budget (EB), year-end report (YER) and audit report.
Selangor scored 93 out of 100 for transparency for its EBP, 78 for its YER, and 67 for its audit report.
The “golden state”, however, scored 0 for its EB as it was not made public.
In a statement, Ideas senior manager of research Alissa Marianne Rode said the MyOBI results reveal significant disparities in transparency and oversight among Malaysian states, as many still fail to ensure adequate disclosure of budget information.
Some states also did not publish essential documents.
“Improving budget transparency is crucial for state governments to enhance public confidence in their service delivery. From our assessment, only seven out of 13 states provided revenue and expenditure estimates, while only Selangor and Terengganu provide detailed expenditure estimates.
“Terengganu stands out as the only state that made its Supply Bill and enactment available, providing a vital public record of the budget authorisation.”
In its recommendations, Ideas suggested state governments ensure timely public availability of essential budget process documents, such as the revenue and expenditure estimates or the budget book, to enhance transparency in state government spending.
This includes effective oversight, which demands the publication of Hansards, sufficient time for budget deliberations and questions, and Public Accounts Committee (PAC) records to apprise the public of the outcome of legislative scrutiny.
“Ideas calls for prioritising the online publication and regular updating of Hansards and PAC records to maintain transparency,” she said.
Despite overall positive developments, concerns persist regarding the oversight capabilities of state legislative assemblies.
While states like Selangor, Terengganu and Sabah have shown stronger oversight through timely budget submissions and increased legislative sessions, overall performance in this area remains inadequate.
Rode added that enhancing public participation mechanisms through forums, empowering select committees to summon state officials and facilitating two-way dialogue with civil society during budget formulation and implementation are essential for fostering inclusive governance.
“Few states currently offer meaningful mechanisms for public engagement, with notable exceptions like Negeri Sembilan and Pahang, which provide feedback mechanisms during both budget formulation and implementation stages,” said Rode.
“Melaka, Selangor and Terengganu have initiated efforts by seeking public input during the formulation stage. However, comprehensive mechanisms for public feedback, including public forums and select committees with authority to summon state civil servants, are essential to foster an inclusive and transparent budget process,” she said.
