2025 Budget Tabled: Kelantan Government Focuses on Balanced Budget and Attracting Investments
Budget Presentation
The Kelantan government tabled the 2025 Budget amounting to RM1.45 billion with an estimated deficit of RM93.02 million. The budget, themed "Keberkatan, Kesejahteraan dan Keseimbangan Untuk Kemakmuran Negeri" (Prosperity, Welfare, and Balance for the State’s Progress), was presented by Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud at the Kelantan State Legislative Assembly (DUN) in Kota Darulnaim.
Deficit Reduction
The total deficit was reduced by RM85.47 million, which is 47.88 per cent compared to the 2024 Budget of RM178.49 million. The deficit reduction shows the Kelantan government’s efforts towards achieving a balanced budget from year to year to ensure the strengthening of the government’s cash flow and cash reserves without reducing the allocation of programmes and projects that involve the interests of the people.
Revenue Projections
The estimated state revenue in 2025 is expected to be RM997.26 million, which includes tax revenue amounting to RM230.51 million, non-tax revenue of RM354.93 million, and non-revenue receipts worth RM411.82 million. The amount shows an increase of RM30.01 million in revenue, which is 3.10 per cent compared to the estimated revenue for 2024 of RM967.25 million.
Land Revenue
Land revenue is the biggest contributor, with a total of RM379.05 million from the total revenue. This shows an increase of RM2.04 million, which is 0.54 per cent compared to the estimate of RM377 million in 2024. The estimated revenue collection in 2025 is projected to increase partly due to the increase in the estimated land revenue collection, which is set at 100 per cent of the amount to be collected, enforcing payment collection against land tax arrears amounting to more than RM50,000, setting Key Performance Indicators for the collection of notice payments and late tax fines land as much as 30 per cent of the amount that should be collected.
Investment Enablers
The Kelantan government is in dire need of an enabler to attract potential investment to the state, involving basic infrastructure such as highways, a stable and sufficient clean water supply system for industrial needs, good electricity supply, and new industrial areas that are equipped with complete basic facilities infrastructure. The state government is confident that the good relationship with the federal government that has been built over the years based on the spirit of federalism is a very positive signal to the state and the people of Kelantan.
Conclusion
In conclusion, the 2025 Budget tabled by the Kelantan government is focused on achieving a balanced budget and attracting investments to the state. The government’s efforts to reduce the deficit and increase revenue will help to strengthen the state’s cash flow and cash reserves, ensuring the implementation and completion of programmes and projects that benefit the people.
FAQs
Q: What is the total budget for 2025?
A: The total budget for 2025 is RM1.45 billion.
Q: What is the estimated deficit for 2025?
A: The estimated deficit for 2025 is RM93.02 million.
Q: What is the focus of the 2025 budget?
A: The focus of the 2025 budget is on achieving a balanced budget and attracting investments to the state.
Q: What is the biggest contributor to the state revenue in 2025?
A: Land revenue is the biggest contributor to the state revenue in 2025, with a total of RM379.05 million.