Kelantan’s 2026 budget projects RM1.43 billion in expenditure with a lower deficit of RM86.2 million, focusing on fiscal governance and revenue growth.
KELANTAN: The state government has tabled a RM1.43 billion budget for 2026, recording a reduced deficit of RM86.2 million.
Menteri Besar Datuk Mohd Nassuruddin Daud said the deficit decreased by RM6.82 million, or 7.33%, compared to the RM93.02 million shortfall in the 2025 budget.
He attributed the reduction to adjustments in statutory funds and the restructuring of state loans under the Kelantan State Government Loans Trust Fund.
“This move not only strengthens fiscal control but also enhances the state’s financial governance to ensure efficiency, transparency, and effective public spending,” he said when tabling the budget at the State Legislative Assembly in Kota Darulnaim.
State revenue for 2026 is projected at RM1.02 billion, an increase of RM19.24 million from the RM997.26 million estimated for 2025.
The projected revenue comprises RM260.8 million in tax revenue, RM332.99 million in non-tax revenue, and RM422.71 million in non-revenue receipts.
The 13.14% rise in tax revenue is driven by higher land tax collection targets, arrears recovery, and a new forest-related tax under the State Forestry Department.
However, non-tax revenue is expected to decline by RM21.94 million due to reduced land premium payments and lower compensation payments.
This decrease will be offset by higher forestry permit fees and new revenue from rubberwood licensing fees.
The State Assembly sitting continues on Sunday. – Bernama
