Kelantan Tables RM1.43 Billion Budget For 2026, Deficit Narrows To RM86.2 Million

KOTA BHARU, Nov 6 (Bernama) -- The Kelantan government today 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 was down by RM6.82 million, or 7.33 per cent, compared to the RM93.02 million shortfall in the 2025 budget.

He said the reduction was achieved through adjustments to 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 themed “Kelantan Sejahtera: Prihatin Rakyat, Ekonomi Berkat, Negeri Rahmat” at the State Legislative Assembly in Kota Darulnaim.

Mohd Nassuruddin said that state revenue for 2026 is projected at RM1.02 billion, an increase of RM19.24 million or 1.93 per cent 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,” he said.

He further noted that the 13.14 per cent rise in tax revenue is driven by higher land tax collection targets (RM104.99 million), arrears recovery (RM54.57 million), and a new forest-related tax under the State Forestry Department amounting to RM3.6 million, collected from mid-2025.

However, he added that non-tax revenue is expected to decline by RM21.94 million due to reduced land premium payments (RM90.35 million compared with RM100.86 million in 2025) and lower compensation payments, following fewer approvals for forest resource extraction.

“This decrease will be offset by higher forestry permit fees, rising from RM8 million in 2025 to RM10 million in 2026, along with new revenue from rubberwood licensing fees and other sources,” he added.

The State Assembly sitting continues on Sunday.

-- BERNAMA