KUALA LUMPUR: The Institute for Democracy and Economic Affairs (IDEAS) independent research of 13 state budgets found that only seven of the states provide revenue and expenditure estimates.
The second edition of the Malaysia Open Budget Index (MyOBI) 2024 found that state budget transparency remains inadequate, with the results reveal significant disparities in transparency and oversight among Malaysian states.
Many state governments still fail to ensure adequate disclosure of budget information, with several not publishing essential documents.
Kedah and Pahang, in particular, lag behind with insufficient disclosure, highlighting the urgent need for improvement. On a positive note, Sarawak and Melaka have made notable progress by enhancing access to crucial budget information compared to previous assessments.
MyOBI, which provides comprehensive analysis of state budget transparency across Malaysia found that states like Selangor, Terengganu, and Sabah have shown stronger oversight through timely budget submissions and increased legislative sessions.
Selangor and Terengganu tied for first place on the index, both scoring 76/100 for public availability.
Research senior manager Alissa Marianne Rode said Terengganu stands out as the state that makes the Supply Bill and enactment available, providing a vital public record of budget authorisation.
"IDEAS calls for prioritising the online publication and regular updating of hansards and Public Accounts Committee (PAC) records to maintain transparency.Additionally, enhancing public participation mechanisms through forums, select committees empowered to summon state officials, and facilitating two-way dialogue with civil society during budget formulation and implementation are essential for fostering inclusive governance," she said.
Alissa said Melaka, Selangor, and Terengganu have initiated efforts by seeking public input during the formulation stage of the state budget.
However, she suggested that comprehensive mechanisms for public feedback are essential to foster an inclusive and transparent budget process, including public forums and select committees with the authority to summon state civil servants.
"Ultimately, the purpose of transparency is to enable accountability and democratic participation in the budget process. The states' legislative and executive arms need to strengthen public participation by engaging with constituents and civil society to solicit budget proposals and feedback on implementation," she said.