THE Perak government on Tuesday tabled a record RM1.61 billion state budget for 2026, the largest in its history, anchored by a continued upswing in revenue collection and three straight years of fiscal surplus.
The spending plan allocates RM1.045 billion for operating expenditure and RM568 million for development, reflecting what Menteri Besar Datuk Seri Saarani Mohamad described as the state’s renewed financial strength after several challenging years.
Presenting the budget themed “Prosperous Perak, Thriving People” (Perak Makmur, Rakyat Sejahtera), Saarani said the 2026 allocation marks an increase of RM80 million compared with the previous year.
The revenue projection comprises RM691 million in tax receipts, RM559 million in non-tax revenue, RM230 million in non-revenue receipts and RM38 million in development funds.
For operating expenditure, he said, the breakdown includes RM496 million for emoluments, RM385.9 million for services and supplies, RM13.9 million for asset acquisitions, RM143.8 million for fixed grants and payments, and RM5.9 million for miscellaneous expenses.
“The increase in operating expenditure takes into account the implementation of salary adjustments for civil servants under Phase 2 of the Public Service Remuneration System (SSPA), which involves a seven per cent increase for the Management and Professional Group as well as the Support Group, and a three per cent increase for the Top Management Group effective 1 January 2026, in addition to the annual salary increments,” he said.
The development allocation, raised by RM30 million or 5.6 per cent compared with 2025, is the highest ever provided by the state.
“The allocation of RM568 million for development is the highest ever provided by the state government. It will drive economic growth and ensure development projects are implemented effectively in line with the Perak Sejahtera 2030 Plan,” Saarani said.
The largest sectoral allocation goes to public welfare, with RM718.5 million earmarked—an increase of RM89.8 million—to strengthen public services and expand the state’s social safety net.
Initiatives include the expansion of the Perak Sejahtera Card to 21,000 recipients, enhancements to the Jualan Sejahtera Rakyat and Jualan Sejahtera Rahmah programmes, and increased food-aid support.
The Perak Islamic Religious Department (JAIPk) receives RM130.8 million for operational strengthening, institutional development, and the upgrading of mosques, surau, and religious schools.
For education, human capital, and youth development, RM100.59 million has been allocated for scholarships, tuition programmes, university student assistance, and the Menteri Besar’s scholarship fund.
A further RM7 million supports Technical and Vocational Education and Training (TVET) to produce skilled workers in line with industry needs.]
Food-security initiatives receive RM73.06 million for strategic crop projects and community garden development.
Saarani added the budget reflects the administration’s commitment to responsible and equitable governance.
“It is my pledge, together with my administrative team, that every ringgit spent will truly return to the people, ease their burdens, open up new opportunities, and ignite hope for every child of Perak for a brighter future,” he said.
In a separate financial update, Saarani reported that Perak has recorded surpluses for three consecutive years: RM29.6 million in 2022, RM62.4 million in 2023, and RM45.6 million in 2024. This recovery follows deficits of RM78 million in 2020 and RM6.59 million in 2021.
“This achievement confirms that disciplined governance and administrative efficiency are Perak’s real strengths in facing any economic challenges,” he said.
He added that the state had once again surpassed RM1 billion in revenue earlier than projected. “As of yesterday (24 November), the state government has successfully recorded revenue and development receipts of RM1.24 billion.
“Our foundation is growing stronger as we build a sustainable future,” he said, expressing appreciation to the land and district offices and related agencies for their contributions.
Saarani said the stable fiscal momentum had enabled Perak to formulate the 2026 budget with projected revenue and development receipts of RM1.61 billion.
“Alhamdulillah, thanks to the hard work of the administrative machinery and the fighting spirit of the people, Perak is back on the path of progress.
“From a state that was almost shattered, we are now able to present a budget with the highest projected expenditure in history for two consecutive years: RM1.52 billion in 2025 and RM1.61 billion for 2026,” he said. - November 25, 2025
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