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Kelantan unveils RM1.38 billion 2027 budget amid operating deficit

The Kelantan state government has tabled its 2027 budget allocation of RM1.383 billion, projecting an operating deficit of RM4.31 million as it navigates spending priorities for the coming fiscal year.

LSN Malaysia · 29 October 2026

Kelantan unveils RM1.38 billion 2027 budget amid operating deficit

KOTA BHARU — Kelantan's state administration presented its 2027 budget on Tuesday, outlining a total allocation of RM1.383 billion to support government operations and development initiatives across the state.

The budget structure comprises RM1.087 billion in operating expenditure and additional allocations designated for development and capital projects. However, the budget projects an operating deficit of RM4.31 million, reflecting the gap between anticipated revenue and planned spending in the operational segment.

The budget proposal reflects the state government's efforts to balance fiscal discipline with essential service delivery and infrastructure development. The allocation addresses ongoing administrative costs while maintaining investments in key sectors that support economic and social development across Kelantan.

State officials indicated the budget has been carefully structured to address priority areas while managing the state's financial position. The tabling of the budget marks the formal beginning of the legislative process for its review and approval by the state assembly.