Selangor Menteri Besar Azmin Ali has defended his deficit budget after tabling the largest budget in the state's history, totalling RM2.88 billion.

The large budgeted sum also meant the state was able to boost its development expenditure to 50 percent, the highest ever under the PKR-led government.

This is the second budget under Azmin's leadership, both of which have been deficit budgets as the state plans to spend substantially more compared to his predecessor Khalid Ibrahim.

"The state government has taken a courageous step in tabling a deficit budget.

"Even though we have been criticised by some who call themselves economic experts, let me reiterate the need for a deficit budget as a cyclical counter move against a sluggish economy, which started in 2015," Azmin said in his speech to the state assembly this afternoon.

Further defending the move, Azmin pointed out that even though he had also chosen to table a deficit budget last year, the budget had turned into a surplus due to higher than expected revenue.

2015 estimated revenue higher

"This is because the state's estimated revenue of RM1.97 billion for 2015 had increased to RM2.05 billion compared with an actual spending of RM1.5 billion up to Sept 30.

"The budgetary position now is in a surplus of RM552.58 million and by the end of this year, the state's revenue is expected to increase to RM2.244 billion, with a surplus of RM274 million.”

The state had initially planned for a budget which would have seen a deficit of RM452.5 million for this year.

Under Selangor's Budget 2016, themed "Developing a Smart Selangor that Cares", an equal sum of RM1.44 billion is allocated for development and operational expenditure respectively.

The 50-50 allocation is in contrast to an allocation of RM1.289 billion (53.19 percent) for operational expenditure and RM1.134 billion (46.81 percent) for development expenditure in the state's Budget 2015, which totalled RM2.423 billion.

In contrast with his predecessor Khalid, Azmin has taken a route of heavier spending.

Under Khalid's leadership, he had taken a more fiscally conservative approach, often insisting on a balanced budget.

Khalid's first budget - Budget 2009 - totalled RM1.4 billion and this amount only increased marginally every year.

By the time Khalid tabled Budget 2014, which was his last, the total sum had only increased by 29.3 percent to RM1.81 billion, over a period of five years.

This had led to party leaders complaining about Khalid being ‘stingy’ and it was among several reasons that led to his ouster.

In contrast, budgeted spending increased by 59.11 percent in the two years under Azmin's leadership.