Kedah aims to cut operating deficit to 10.59pc with RM1.34b Budget 2027, says MB

Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the state government had estimated revenue of RM850 million under the budget, themed ‘The Greater Kedah: Mensejahterakan Rakyat’, while operating expenditure was projected at RM940 million. — Picture by Sayuti Zainudin

First Published: Sunday, 15 Nov 2026 7:11 PM MYT

ALOR SETAR, Nov 15 — The Kedah state government today tabled its RM1.34 billion Budget 2027, projecting an operating deficit of RM90 million or 10.59 per cent, for the year.

Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the state government had estimated revenue of RM850 million under the budget, themed ‘The Greater Kedah: Mensejahterakan Rakyat’, while operating expenditure was projected at RM940 million.

He said the revenue target represented an increase of RM12 million from the RM838 million targeted in 2026, with land revenue contributing the largest share at RM551 million, followed by miscellaneous revenue (RM253 million), forestry revenue (RM30 million) and district revenue (RM16 million).

“Of the total operating expenditure allocation, RM81.66 million is set aside for charged expenditure, while RM858.34 million is allocated for supply and services expenditure.

“The 2027 Budget also includes allocations for the State Development Fund, Forest Development Fund and Water Supply Development Fund, with total development expenditure amounting to RM401.28 million,” he said when tabling the Kedah Budget 2027 at the Kedah State Legislative Assembly sitting at Wisma Darul Aman here today.

He said RM245 million of the development allocation was set aside for the State Development Fund, involving 10 implementing departments, while RM12.53 million was allocated for forestry development.

The Water Supply Development Fund received RM143.75 million, comprising RM138.75 million from federal government loans for the implementation of three loan-funded projects and RM5 million from the state government’s allocation.

“The state government also aims to gradually reduce its operating deficit to 10.59 per cent in 2027, from 12.65 per cent in 2025 and 11.81 per cent in 2026.

“This reflects the state government’s commitment to strengthening its fiscal position through expenditure controls, improved management efficiency and optimisation of state revenue sources to ensure long-term financial sustainability,” he said.

The 2027 Budget is the second year of the implementation of the 13th Malaysia Plan (13MP), continuing the state’s development agenda based on the Kedah Development Plan 2035 and The Greater Kedah 2050, with emphasis on ensuring that economic progress also improves the people’s well-being. — Bernama