ALOR SETAR, Nov 15 — The Kedah state government recorded revenue receipts of RM504 million as at November 13, which is 72 per cent of the initial revenue projection of RM701.94 million for 2020.
Mentri Besar Muhammad Sanusi Md Nor attributed the decline in revenue to several moves made by the state government to ease the people’s financial burden due to the impact from the Covid-19 pandemic that had affected the country throughout the year.
He said among them was the extension of the due date for payment of land tax without any penalty for late payments, effective June 1 until Sept 30, and allowing taxpayers to pay land tax in instalments until Dec 31, 2020.
“Besides that, the state government had also decided to defer the monthly hire-purchase payment for the state Public Housing Project (RPA) and the People’s Housing Project (PPR) for six months, from April 1 to Sept 30.
“This also includes exemption on rental payments for shops under the supervision of the Housing Division, Kedah State Secretary’s Office from April 1 to Sept 30,” Muhammad Sanusi said in tabling the Kedah Budget 2021 at the State Legislative Assembly session here, today.
Under the budget, themed “Kedah Prosperous, Joy for All”, the state government projected revenue collection for 2021 to be at RM720 million — an increase of RM18 million compared to the projection for 2020.
“The amount comprises RM314 million in tax revenue, RM246 million non-tax revenue and RM160 million non-revenue revenue,” he said.
Muhammad Sanusi said taxes were the largest contributor to state revenue at 44 per cent, while non-tax revenue and non-revenue receipts contributed 34 per cent and 22 per cent, respectively.
For 2021, the proposed allocation for operating expenditures is RM798.8 million, an increase of RM39 million compared to last year.
Of the allocation, RM88.9 million is for expenditure incurred and RM709.9 million for supply expenditures.
The state government also proposed to allocate RM200.99 million for development expenditures.
“Next year will be the start of the 12th Malaysia Plan (12MP), and there are various development schemes that have been planned by the Federal Government, especially involving Kedah.
“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,” he said.
Taking into account revenue projections, operating expenditure and government development expenditure, the deficit for 2021 is estimated at 11 per cent or RM78.88 million, he added. — Bernama
