State grants are channelled to all states simultaneously every month in a bid to be fair and equitable in matters of giving to State Governments.
The MADANI government has increased Federal Government Grants as well as Development Allocations for all states for the years 2023 and 2024.
Prime Minister Dato’ Seri Anwar Ibrahim, in a statement issued by the Ministry of Finance today (Apr 8) on the matter, said: “The MADANI government is committed to ensuring that goodwill payments (Wang Ehsan) are earmarked for the benefits of Terengganu and Kelantan states under the priority of reducing the financial burden of the people in the two states. The Government is always open to discussion and suggestions from both State Governments regarding the use of the payments so that it can be used effectively to help the people directly.”
Anwar, who is also Minister of Finance explained that the grants from the Federal Government is not enshrined by law. However, the MADANI Government has channelled petroleum goodwill funds amounting to RM786 million to the Terengganu State Government and RM200 million to the Kelantan State Government last year alone.
In addition to this, last week, the government had also channelled grants amounting to RM172.3 million to the Terengganu State Government and RM58.6 million to the State Government of Kelantan to finance the State Government’s emolument commitment, in addition to the payment of RM103.1 million for the Terengganu State Government’s obligations to its contractors.
Any remaining money will still be used for the state of Terengganu and Kelantan through projects or rakyat programmes such as poverty eradication and basic infrastructure projects for the well-being of the people in the states, Anwar added.
