KUALA LUMPUR (July 23): Selangor and Terengganu are the most transparent states with their budgets in Malaysia, according to a study by the Institute for Democracy and Economic Affairs (Ideas).

Both states scored 76 out of 100 on the Malaysia Open Budget Index (MyOBI) 2024 surveyed by the think tank. The index 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.

Terengganu stood out by providing detailed spending data down to the programme level, facilitating thorough public scrutiny, according to Ideas. The state is also the only one to consistently publish its enacted budget.

Selangor and Negeri Sembilan, which scored 69 in the third place, also excelled in providing a breakdown of operating expenditure by economic classification, Ideas noted.

However, Kedah and Kelantan ranked the lowest, with only 18 points each, as they did not make any executive budget proposal documents available to the public.

Further, Kelantan is also the only state to password-protect a key executive budget proposal document on the official state government website, making it inaccessible to the public and hampering its score.

While federal policies and politics often receive more attention, it is also crucial for democracy to be felt and mobilised at the local level, Ideas CEO Tricia Yeoh said during the launch of MyOBI 2024.

However, there is limited information on state government spending and specific projects, she flagged. Budget transparency is crucial for enhancing governance, fostering accountability and building trust in democracy, she stressed.

Clear and comprehensive budgeting helps build institutional trust, promoting fairness and equity, Yeoh noted.

“MyOBI ensures that the general public and civil society can be informed and contribute meaningfully” in demand for better fiscal accountability, she said. “We strongly believe that engagement helps prevent misappropriation and mismanagement of resources, leading to a more efficient and effective use of public funds.”

Yeoh also encouraged state governments to publish all budget documents in a timely manner, especially the estimates of revenue and expenditure, to facilitate the tracking of public spending and revenue.