ALOR STAR: Menteri Besar Datuk Seri Muhammad Sanusi Md Nor has tabled a RM1.26 billion state budget for 2025, with a projected deficit of RM99.9 million or 12.65 per cent.
The Perikatan Nasional Jeneri assemblyman said the budget was based on a projected revenue of RM790 million against RM889.9 million in expenses.
He said the 2025 revenue projection was RM42 million higher than this year's estimate.
"We anticipate higher revenue collection based on current collection performance and measures implemented at various levels. These include monitoring ongoing revenue collection, addressing outstanding revenue, and preventing leakages by key state agencies," he told the State Legislative Assembly when presenting the 2025 Kedah Budget at Wisma Darul Aman here today.
Sanusi said the revenue breakdown includes RM518.04 million from land assessment, RM219.71 million from miscellaneous revenue, RM35.73 million from forest revenue and RM16.52 million from district-level revenue.
"The 2025 State Budget aims to advance state development, centred on the Kedah Development Plan 2035 and the Greater Kedah initiative, under the concept of 'Kedah Sejahtera Nikmat Untuk Semua' (Prosperous Kedah for All)."
Sanusi said RM889.9 million is proposed for operating expenditure, of which RM87.2 million is allocated to the Development Fund.
He added that the operating expenditure includes RM82.84 million for statutory expenditure and RM807.06 million for supply expenditure.
"This expenditure estimate represents an increase of RM36.79 million, or 4.3 per cent, mainly due to higher emoluments for civil servants following the implementation of the Public Service Remuneration Scheme, which begins in December 2024."
Sanusi said the state government is also proposing a RM209.8 million allocation for development expenditure under the State Development Fund.
The 2025 Budget also proposes a forest development projection of RM4.56 million, with expenditure allocations of RM4.03 million, resulting in a surplus of RM527,000, he added.
"There is a significant difference in the total allocation approved for 2025 compared with 2024. This is because the Kedah State Forestry Department's allocation, which includes state provisions and receipts from the Ecological Fiscal Transfer for Biodiversity Conservation, has been transferred to the State Development Fund."
Sanusi said the state government is also proposing a RM246.9 million allocation to the Water Supply Expenditure Fund.
"This includes RM300,000 of state funds and RM246.6 million of federal loans."
Later at a press conference, Sanusi said the state land assessment rate would be reviewed next year.
"There will be some new fees introduced. Under Section 51 of the National Land Code, (the state) is allowed to review rates every 10 years.
"The last review (in Kedah) was enforced in January 2016. Hence, the next review can only be enforced after January 2026. This will translate to higher revenue for the state government."