Wan Azizah: Fair allocations to all states, regardless of party rule

Unlike the previous administration’s unfair distribution of funds, Deputy Prime Minister Dr Wan Azizah Wan Ismail said today the federal government will give equal allocations to all the states, regardless of which party is ruling a state.

For example, she said, the PAS-ruled Terengganu government will directly receive the oil royalty itself instead have the funds channelled through federal agencies.

“The prime minister said the allocations must be distributed equally because certain rich states can afford (to cope), in comparison to certain poor states which should be given more allocation.

“The federal government will return wang ehsan (oil royalty) to the Terengganu government, although the state is not ruled by the same party as the federal (government).

“But they have to give the rakyat, no matter their party affiliation,” Wan Azizah told reporters after attending the national financial council meeting at the Ministry of Finance at noon.

Among state menteri besars and chief ministers who attended the meeting were Terengganu's Ahmad Samsuri Mokhtar, Kelantan's Ahmad Yaakob, Johor's Osman Sapian, Penang's Chow Kon Yeow and Sabah's Shafie Apdal.

When queried, Ahmad Samsuri confirmed the state will receive oil royalty directly from the federal government.

“The prime minister has informed that all states, and Terengganu will directly receive the oil royalty from the federal (government),” he said, adding that at least five percent oil royalty will be given.

Currently, state government revenue source is limited to land premium which is much smaller compared to federal government, which holds taxation power.

The state  only receives federal allowance via per capita grant and State Road Grant (Marris), a mere 2.4 percent of the total federal budget in 2013 -Mkini