Kedah hits 72% of projected RM701.9 mil revenue for 2020

ALOR STAR – The Kedah government recorded revenue receipts of RM504 million as of November 13, 72% of the initial projection of RM701.94 million for the year.

Menteri Besar Muhammad Sanusi Md Nor attributed the decline to measures taken by the state government to ease the people’s financial burden due to Covid-19.

Among them are the extension of the due date for the payment of land tax without penalty for late payments, effective June 1 to September 30, and allowing taxpayers to pay land tax in instalments until December 31.

“Besides that, the state government also decided to defer the monthly hire-purchase payment for the state Public Housing Project and the People’s Housing Project for six months, from April 1 to September 30.

“This includes an exemption on rental payments for shops under the purview of the housing division of the Kedah secretary’s office, from April 1 to September 30,” he said when tabling the state’s budget for next year today.

Under the budget, themed “Kedah Prosperous, Joy for All”, Kedah projects revenue collection for 2021 to be at RM720 million – an increase of RM18 million from this year.

“The amount comprises RM314 million in tax revenue, RM246 million in non-tax revenue and RM160 million in non-revenue revenue.”

He said taxes are the largest contributor to state revenue at 44%, while non-tax revenue and non-revenue receipts contributed 34% and 22%, respectively.

For 2021, the proposed allocation for operating expenditure is RM798.8 million, an increase of RM39 million from this year.

Of the total, RM88.9 million is for expenditure incurred and RM709.9 million for supply expenditure.

The state government also proposed an allocation of RM200.99 million for development expenditure.

“Next year will be the start of the 12th Malaysia Plan, and there are various development schemes that have been planned by the federal government, especially involving Kedah,” said Sanusi.

“The state government will strive to mobilise all state and federal departments, government-linked companies, local authorities, state statutory bodies and the private sector to develop the state and make the people prosperous.”

Taking into account revenue projections, operating expenditure and government development expenditure, the deficit for next year is estimated at 11%, or RM78.88 million, he said. – Bernama, November 15, 2020