ALOR SETAR — Kedah can achieve RM1 billion in revenue collection by 2028 through various measures, including by raising assessment rates, Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said when tabling the state’s 2025 budget today.
The review needs to be done in line with current property values, he said.
“It is also a step to increase revenue collection in a consistent and organised manner for the next 10 years.
“The state government needs to be in a strong financial position to (carry out) spending in order to fulfil the ever-increasing demands of the rakyat,” said Sanusi when tabling the RM1.26 billion spending plan.
Sanusi, who is Jeneri assemblyman and in his second term as the state’s top executive, said the RM1 billion revenue target can be achieved through other measures.
Besides collecting assessment, the Kedah expects to earn sizeable profits from carbon credit sales to both domestic and foreign firms that want to adhere to environmentally friendly standards.
The PAS lawmaker also said Kedah will continue exploring for rare earth elements (REE) which have been categorised as the most viable source of revenue for the coming years.
He said REE reserves in Kedah are estimated to be at 1.196 million metric tonnes, with the figures referring to new sources that are expected to be extracted in the next 10 years.
“We hope that the potential of REE would bring a massive impact to the state economy.
“Therefore the state government urges the federal government to expedite (the introduction) of the right standard operating procedures (SOPs) in extracting REE,” pleaded Sanusi.
Budget breakdown
The Perikatan Nasional-led state government projects that it would be earning RM790 million in total revenue for 2025, which is RM42 million more than the estimate for this year.
The RM1.26 billion budget for Kedah next year is a deficit budget of RM99.9 million or 12.5% after taking into account revenue estimates, operational expenditures, and allocations from State Development Fund and Water Supply Consolidated Funds, Sanusi said.
A huge share of earnings would come from land revenues amounting to RM518.04 million, followed by various products (RM219.71 million), forest products (RM35.73 million) and district revenues (RM16.52 million).
Meanwhile, the operational expenditure for 2025 would be RM 889.9 million. From this amount, RM87.2 million has been set aside as contributions from the State Development Fund to cover the deficit from the fund.
Sanusi today also announced special financial assistance of RM2,000 for its 5,376 civil servants, to be paid in two instalments, in March and June next year.
The bonus payments will involve an allocation of RM12 million. – November 24, 2024
