Kelantan tables RM1.38b Budget 2027 with RM4.31m operating deficit

Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud said the budget focused on four key pillars, namely strengthening religion and human capital development; social welfare and public protection; a progressive and resilient economy; and environmental sustainability and urban beautification. — Picture via Facebook/Mohd Nassuruddin Haji Daud

First Published: Thursday, 29 Oct 2026 4:35 PM MYT

KOTA BHARU, Oct 29 — The Kelantan state government today tabled a RM1.383 billion Budget 2027, comprising RM1.087 billion in operating expenditure and RM296 million for development.

Menteri Besar Datuk Mohd Nassuruddin Daud said the budget focused on four key pillars, namely strengthening religion and human capital development; social welfare and public protection; a progressive and resilient economy; and environmental sustainability and urban beautification.

He said state revenue for 2027 was projected at RM1.082 billion, comprising RM238.8 million in tax revenue, RM314.5 million in non-tax revenue, and RM529.29 million in non-revenue receipts.

“The difference between projected revenue and operating expenditure indicates a deficit of RM4.31 million.

“This requires consistent fiscal discipline through expenditure controls, stronger revenue collection and a reassessment of less urgent projects,” he said when tabling the budget at the State Assembly sitting here today.

Mohd Nassuruddin said the state government would prioritise spending that safeguarded public welfare, supported essential services and delivered long-term economic benefits despite limited fiscal space.

He said spending decisions must consider financial capacity, project readiness and implementation capabilities.

“Land-related revenue is projected at RM373.57 million, forestry revenue at RM70.4 million and mining revenue at RM48.41 million.

“State resources must be managed to ensure fair returns, regulatory compliance, and environmental protection. At the same time, existing revenue collection must be improved to ensure the state’s rightful dues are collected efficiently,” he said. — Bernama