It also announced a special financial assistance of RM500 for state civil servants.

Menteri besar Nassuruddin Daud said the payment would be disbursed in February next year as a token of appreciation for their contributions and sacrifices. It will cost the government RM4.97 million.

He said the total deficit is being reduced by RM85.47 million (47.88%) compared to the RM178.49 million in the 2024 budget.

“The deficit reduction shows the Kelantan government’s efforts towards achieving a balanced budget to ensure the strengthening of the government’s cash flow or cash reserves without reducing the allocation of projects for the benefit of the people,” Bernama reported him as saying.

Nassuruddin said the estimated state revenue in 2025 is expected to be RM997.26 million, which includes tax revenue amounting to RM230.51 million, non-tax revenue of RM354.93 million and non-revenue receipts worth RM411.82 million.

He said, the amount shows an increase of RM30.01 million in revenue compared to the estimated revenue for 2024 of RM967.25 million.

“Land revenue is the biggest contributor with a total of RM379.05 million from the total revenue and it shows an increase of RM2.04 million compared to the estimate of RM377 million in 2024.

“The state government is confident that the good relationship with the federal government, that has been built over the years based on the spirit of federalism, is a very positive signal to the state and the people of Kelantan,” he said.

The state assembly sitting resumes on Sunday.